I decided to have him play the melody while I played the chords. Wow! What a revelation! Beautiful music. We were actually playing together and it sounded like music, like the song. It was an eye opener for James to see how the song actually fits together and helped him get the timing correct (which is impressive considering the backing track I gave him, lol).
It was an eye opener for me in using it as a teaching tool/method. When I was learning to play, I never had a guitar teacher do that with me. I think it would have been a tremendous help.
It is truly wonderful getting to a point with students where this is even possible (skill level-wise) and I can see using it again soon with other students I'm working with.