Bert --
What about the 1860 census? How many adult men named William Loveless or Lovelace lived in the State of Texas at that time. Aside from 'your' William Loveless, who appears in Collin County in 1860 (age 26, born SC), there's only one other man by that name. He's forty-six years old, and isn't likely to have entered Confederate military service.
The service file for this man may include further information. Have you checked there?