No, Gary Jules was never in Tears for Fears. Tears for Fears was the duo of Roland Orzabal & Curt Smith. Plus whichever musicians they felt like playing with at the time.
However, Roland (who wrote the song) did give the song his blessing, and said it's a great rendition.
The video for the original TFF version has Roland doing some hilarious dancing, though. Really a good giggle.
Gary Jules' album, Trading Snakeoil for Wolftickets, is really good, by the way. I like to describe it as a cross between Nick Drake & Jack Johnson.
thanks for the info on an amazing song. Nick Drake crossed with Jack Johnson? sounds intriguing, because i can't imagine that at all.