I agree, but it was a cheap joke... especially with the flaming Moltres costume. >_> (Heck, I'm a Rocketshipper - Jerry and Tom are privately intended to be Jessie/James and Butch/Cassidy spawn, respectively. Hence why they show odd favoritism towards certain characters.)

Think about it: Cori has to constantly remind the audience that James is manly and not gay in this, right? So, what are we supposed to take from this? It almost seems like Cori herself can't believe that a feminine man like James could be anything but gay, and so she has to constantly remind herself that he isn't actually gay, AND remind us that "he's totally manly, really" because otherwise she would fall back onto thinking he really was gay.
YEP. That sums it up perfectly.