Apparently Jeff Van Grumpy as on Mike James' doorstep the first minute of free agency. Given the TJ Ford trade, Mike's apparent desire to come back to Houston (offseason home, family's hometown), the Rockets' need for shooters, and the only real rival for his services (Dallas) can only offer the same (the MLE), I think it'll get done. Of course, the Rockets still have a fairly gaping hole at the 4, but at least it would be something.
Edit: Apparently the Rockets also contacted Speedy Claxton and Fred Jones. Fred's a RFA, so I doubt anything will happen there. Speedy's an interesting option though if Mike James falls through for some reason.