Correct both. In the Russian language is not such a strict sequence of words, as in English. Although sometimes, as a result of changing the order of words can completely change the meaning of sentences. Moreover, if a comma is not delivered or delivered in the wrong place, it can completely change the meaning of the sentence. A classic example: "Казнить нельзя, помиловать" и "Казнить, нельзя помиловать". In the first case of human released, while in the second case put to death.

both variants

I thought both mean: "Are you in love with me?"

Actually both means the same. But first one can also mean " Are you in love with ME ? " (not with James or someone else ?) It depends on context..