How are the teachings in the Book of James consistent with Salvation by Grace alone? I was reading through James today and I understand his point was to convey to the Jews that only having faith - but not showing your gratitude for the grace they've received - is not good. He does get pretty close though to saying that without works your are not saved. Especially when he mentions that by leading others back to Christ covers sins:


  19 My brothers, if anyone among you wanders from the truth and someone brings him back, 20 let him know that whoever brings back a sinner from his wandering will save his soul from death and will cover a multitude of sins. -James 5:19-20


And also:


  17 So also faith by itself, if it does not have works, is dead. -James 2:17


If faith without works is dead, how can we have salvation by grace through faith ALONE?

I came from a Baptist background to a Reformed theology because I didn't agree with their emphasis on works and not Grace, but the book of James (which was used as a defence for this ideology) is really confusing on this. 

Can you comment on how some of these statements are compatible with the Grace by Faith Alone doctrine? I don't read Greek so I'm wondering if something was lost in translation or maybe I don't know enough of the context about this book.
If you (say you) have faith but don't have works, do you really have faith?

Works are the result of faith. They don't save you. If you have faith, it is only natural that you will have works. James's question is to people who have no works. Why don't you have any works? Where is your faith?


  Matthew 12:33 (NASB)
  "Make a tree good and its fruit will be good, or make a tree bad and its fruit will be bad, for a tree is recognized by its fruit."


[The sum total of] Our works reveal what we really believe. If we believe God loves everyone, won't we act like it and be unselfish? Won't we put their interests or needs ahead of our own? This is the fruit of faith.

Our works do not save us, for our belief (faith) is what puts us in a position to receive God's grace. They only reveal (to us, more than others) what we have faith in.