Ahh, yes, how I do love high school.

I think you've nailed it right on the head there, Angie. James was 15, in love, and stupid because of it.
Sometimes I wonder how James would've turned out if there hadn't been so much going on with the Death Eaters as well. From what we know, he was a good person--I'm guessing he had the capacity for compassion, too, else someone like Lily probably wouldn't have gone for him later on. We're also told that he hated the Dark Arts. So how did that bring out the best and the worst in him?
I tend to think of James as a character with a darker side to him--not exactly a twisted or sadistic side, but something cynical and hardened. Given that he was alive during all of Voldemort's reign of terror, it's reasonable to guess that a lot of James's less charismatic qualities developed alongside his lovable ones.