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The rumours abound, and the demonisation of a completely innocent man begins, with absolutely no evidence whatsoever. How very cunning of the press to publish a thirty year old photograph and then sit back and wait for the shit to start flying!
I googled for news on Sir Jim and all I found was a Sun story based around a photo of him at the school in Jersey. When I first saw the photo I thought it didn't look quite like Jim and then I read how he says it's not him and he was never there. It's possible it was a look-a-like; there were plenty of people doing that back then. However, even if Jim had been there, it's unlikely he'd have been allowed to see anything bad - if there was ever anything as bad as has been alleged. Real evidence of serious crime is still lacking.
I don't think this photo is any threat to Jim's reputation.