He was real, and there is evidence that he existed. He was what he said he was-he was the Son of God. But, the Christian religion is based on faith-thats the keyword-faith. We have faith that he existed and was the Son of God. And that faith will be rewarded by him.
As mentioned, the biblical Jesus probably was based on a real person. However, it would be absolutely horrible if the biblical description were accurate - the notion of condemning people to eternal torment for not worshiping him is revolting, and would be worse than anything us humans have ever done.
I really don't "worship him". I love him, and thats how it should be. I don't bow down to him and praise him for sh**ts and giggles. I do it out of love. I love him because he committed the ultimate sacriface for our sins. No matter how hard I try, I will never pay back the debt I owe to him-my afterlife. And to pay this debt off, I try to love my brothers on Earth, and preach the Gospel.
Jesus is made out to be "LETZ KILL TEH GAYZ". But, all in all, Jesus was a God of love, not hate.