James had gone to a few meetings before gracefully dropping out.
I really like this line and what it says about James.
Ooh, Lucius is so insidiously naughty in his first chat with Peter. All that talk a la "Muggle-borns barging into our lives and taking our jobs..."
I like how subtly Peter is drawn into the web - first by Lucius, then by Voldemort, then by Lucius's seduction. But how awful, the fact that he sees his betrayal of James and Lily as the point where he finally grows a backbone!
I also really liked his chat with Draco, and especially how unsubtle he is compared with Lucius's first chat with him. :P
You bring the ending around beautifully; it feels inevitable, but still fresh, and I loved the memory of the Sorting Ceremony.