Three of Henry James's novels have recently been issued in new editions, two in hardback by Norton and a third in paperback by Grove Press. Republished in the Norton Critical Edition Series were The American [$14.95] and The Wings of the Dove [$17.50], while Grove Press is offering The Sacred Fount [$2.95]. J. B. Priestly, the prolific British writer, has assembled My 3 Favorite Novels in a new Stein and Day hardback [$15.00], the novels being Angel Pavement, Bright Day, and Sir Michael and Sir George.Pocket Books has reprinted John living's The Water-Method Man [$2.50], a predecessor of The World According to Garp.Vintage has reissued William Faulkner's Knight's Gambit, a collection of six mystery stories [$1.95], and Bantam Books has a paperback version of Pete Hamill's Flesh and Blood [$2.50], Shambhala has published a paperback edition of Nobel Prizewinner Juan Ramo nJime nez's Platero and I [$4.95].