Faith versus good works

The age old argument between Paul who believes that faith alone leads to salvation where James espouses the belief that good works are necessary is intriguing to me. Perhaps, this argument is of so much interest to me because my parents have two different viewpoints.  My mother, the former Lutheran, sits in the faith camp whereas my father who was schooled in the Quaker and Evangelical United Brethren beliefs follows the teachings of St. James, that faith without good works is dead.

So how do I reconcile these two viewpoints.  I have merely to examine the newspaper where I can read a story about an unethical man who hides behind the veil of charitable acts.  At a glance, you would think that this man is wonderful because he donates his time, talents, and treasures to help other people, but when you take a closer look at this man, you discover the truth.  He might be a philanthropist, but he is also a philanderer.  He professes his faith publicly, but he doesn't adhere to the church's teachings.  Will his good works earn his salvation or will he judged for all his deeds? 

I know that good works alone will not save me; I also know that I am saved only through the grace of God and that the faith that I put in Him will hopefully inspire me to  produce good works.