The family story may be quite accurate. He was in the 11th Alabama, having enlisted in Perry County in June 1861. He was discharged Jan 18, 1862. His discharge is in his records and gives a physical description of him. He was discharged by order of the Secretary of War. A specific reason was not stated, but the records indicate the he was discharged in accordance with Special Order No. 10. I am not familiar with that order, but someone else on the board may be. You can order a copy of his record from the following link, and by doing so, you will be supporting these boards.

http://history-sites.com/research/