Yes, I believe those two land entries were recorded in the Jefferson Land Office, which is not surprising if you look at a map.
That James Pace obviously described himself as being "of Clay Co KY" because that's where he was living in 1816 - and almost certainly he was living there from at least 1810 when his father George was enumerated with his family on the Clay Co census.
I think there has been an understandable confusion on this line.Two different James Paces have been mixed up. If you want to find your wife's ancestors, better stick to the golden rule of genealogy: start with the earliest PROVEN ancestor (in this case James Pace d. 1841 in Lawrence Co) and work back from there.
There's no sign he came from Clay Co KY.At least two of his children were born in NC during the years before he came to Indiana.He was in Indiana by 1819, according to the webpage about Abraham Mitchell, cited earlier in this thread, because he was one of the first "Messengers" of the Salt Creek Baptist Church.The Shawswick Township history, also cited in this thread,names him as one of the early settlers who entered for land in Shawswick Township in 1820.Look for that entry, and see if it's the same land he assigned to William Fish in 1828.
His neighbors and associates came from Ashe Co NC, and there was a James Pace in Ashe Co NC.You may find further evidence in the Ashe Co records to help determine whether the James Pace in Ashe Co was or was not your wife's ancestor.