I just graduated from the University of Oregon and was at James' first game in Autzen (by far loudest stadium in the country, and yes louder then the horse shoe or swamp, I worked for oregon football and have decibel records).
Anyways..Harbaugh is going to enhance his receiving skills because he is going to be used similar to Daren Sproles. James did not catch the ball out of the backfield much. He is a very small back but when people say running backs from spread offenses can't run in between the tackles just don't know how to evaluate football talent (Jonathan Stewart). James can get lost in the backfield and blow by linebackers if he gets through the hole. I really don't see him being split out wide and utilized maybe as a decoy at first. It will be some time till those skills are refined or used at all. Look for him to be a safety outlet option out of the backfield if Alex can't find any open receivers.