Waugh is a famous name in Lancashire because of poet Edwin Waugh (1817-1890), son of a Rochdale shoemaker. Lancashire Online Parish Clerks has register entries for Waugh from 1720s onwards. There were brothers, John (b. 1764) and James (b. 1772), sons of another Rochdale shoemaker, but they seem to have remained in Rochdale. The name also appears in Liverpool, Ormskirk, Preston, Cartmel and Ulverston and Todmorden (the last town now in Yorkshire) in the 18th century.
www.lan-opc.org.ukDon't be precise about James' birth year. It's possible that his age at death was only an estimate. Recorded age at death of one of my ancestors in 1877 was 80+ but he was really only 74. I suggest searching baptisms a few years either side of 1767. He may not have been baptised as a baby.
Have you found James' marriage? If so, what information does it give you?
Any chance James wasn't C. of E.? Bear in mind that members of other religious denominations turn up in Anglican parish registers during 18th and early 19th centuries for a variety of reasons.
Was James' wife local to Hull? Was she alive at 1841 census?
Have you tried apprenticeship records for James or John?
Surname Waugh could have been spelt in a number of ways in 18thC. It was "Wall" in one Lancashire register. May also have been Waw.