Thanks Pete, a tall story indeed as you say, a bit of a Robin Hood character in the family, great stuff.

Revisiting the Welsh Newspapers site shows various problems at Blakeney including the sad murder of PS Morris in 1895, just as Slowhands has said. It seems James James was arrested as part of the followup police operations. Not suggesting for a minute he was involved with the murder, but I suspect that didn't help his case when in front of the Magistrate.

"THE BLAKENEY TRAGEDY.
ARREST OF THE THIRD ALLEGED POACHER.

On Wednesday morning Police-constable Jones, of Blakeney, searched the house of James James, a quarryman, of Viney Hill, near Blakeney, and discovered his man underneath the hoards in his bedroom. Prisoner, who offered no resistance, was taken over to Newnham, and charged before a local magistrate with taking four rabbits on the 9th inst. from land owned and occupied by Mr. Russel James Kerr of Newnham —Moses Yirgo and Joseph James, who were secured at the time James escaped, were dealt with at Littledean last Friday. It was whilst in search of James on Sunday morning that Police-sergeant Morris lost his life. "

South Wales Daily Post, 21 November 1895
http://welshnewspapers.llgc.org.uk/en/page/view/3353953/ART75/blakeney%20police

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I've read more newspaper articles about this sad case and am pleased to see James James wasn't mentioned again with regard to the murder itself. The National Archives site also has articles,
http://www.nationalarchives.gov.uk/a2a/records.aspx?cat=040-d8746&cid=0#0

This Roll of Honour for the Gloucestershire Constabulary has a photo of PS Morris.
http://www.gloucestershirepolicemuseum.co.uk/page_2346438.html

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Regarding the gunpowder, perhaps that story was borrowed from this incident reported in February 1899, again involving Moses Virgo.

"THE OUTRAGE AT BLAKENEY
PRISONER BEFORE THE MAGISTRATES.

Moses Virgo, collier, of Blakeney Hill, was brought up in custody at Littledean Police- court on Friday charged with damaging the dwelling-house occupied by Henry Davies ("Taffy"), fisherman, by exploding dynamite. Mr. Frank Treasure, of Gloucester, who prosecuted, stated that since he had arrived at Littledean he had spoken to Davies who gave information to the police, and in the light of a statement received from the superintendent, who had made inquiries at Mitcheldean, which was that prisoner had slept at the White Horse Hotel there all night, he asked the justices' permission not to offer any evidence. This the justices agreed to. Virgo and his father somewhat excitedly asked the court to grant their witnesses' expenses. It was stated that when prisoner was arrested the police were told that they were at Mitcheldean on the night in question. The justices, however, refused to allow the fees.

http://welshnewspapers.llgc.org.uk/en/page/view/3371429/ART31/blakeney%20police