Is this sentence correct?

It makes sense, but it would read better like this:

"I couldn't recognize him at first but then, as he started walking toward me, I realized it was him."

Technically Erg isn't it spozed to be 'he'

Not in modern English.

You have inserted a couple of commas, which I agree with, but you have struck off the final 's' of 'towards'. 'Toward' and 'towards' are interchangeable in both American and British English, however 'toward' is more common in American English, and 'towards' is more common in British English.

Cen that's why I said 'technically'

Looks like it could go either way. he/him discussion. "He" is the more technically correct, "him" is the more popular usage.

Thanks Blick, a little support now and again is sorely appreciated, what with all the TAATANE