Richard, This is very helpful, thank you! A cousin of mine had been doing the Hand genealogy of our family in the 1960's and had gotten the info from that census, but didn't record the data accurately (and was a VERY bad typist), so I wanted to verify what I had. She also didn't note anything about the James' living in the same town.
They were from NJ, according to other census records that I have. I believe the younger James is George's son, but don't have proof of it yet. But it helps to know he was in the same town with them at that time - I feel more confident I'm not chasing up the wrong tree where he is concerned.
As for the older James, he could very well be George OR Rachel's brother. Rachel's maiden name was also Hand. I'll definitely look into him further, as it might help me find George or Rachel's parents.
Thank you very much for your time and efforts - it's greatly appreciated!