Ryan and Jethro,
It seems that we largely agree on the subject discussed here. I thought I would make a few points that might explain things better for others. Let me know if you disagree:
Although Paul makes a great distinction between faith v works performed under obligation of the Law, he DOES make it clear that there is a strong connection between faith and obedience to God's Law. It would seem to be contradictory. However, this contradiction goes away once we understand the difference between "work done under the principle of obligation" vs "works done under the power of God's grace". Man cannot obligate God. This is one of his most fundamental teachings:
"to the one working, the wage is not reckoned according to grace, but according to obligation" Romans 4:4
"And if by grace, then it is no longer works; if it were, grace would be no longer grace" Romans 11:6
Any understanding of justification must take into account this principle of legal obligation, which distinguishes between "grace" and "works". In Rom 4:4, Paul indicates two ways of receiving eternal life - 1: that which is owed to the individual for work done (paycheck...) OR that which one receives as a gift from God. The later is grace. Clearly, God must give salvation by grace, a gift, since no one can obligate God. This was a misunderstanding of the teachings of Deuteronomy and the Covenant by the Jews, who turned faithful following of the Law into legalism that God owed a reward for obeying.
How is one's relationship with God grounded? Paul links obedience to the law and faith together for justification (such as Romans 2:13). "Faith" and "works", for Paul, become the background for how that relationship with God is grounded. Do we come to obey God by legal obligation, believing God owes us a reward? Or do we recognize that we require God's grace to save us and that God is near to the person who lives by faith?
Paul lays this out in Romans 2:5-10. God saves or condemns based on the works of the individual. (esp. v7). Is Paul contradicting himself here and Romans 3-6? No, because the works of Romans 2 are works done under the power of God's grace, rather than under legal obligation:
"Or do you despise the riches of his kindness and his forbearance and longsuffering, not realizing the kindness of God leads you to repentance"? Rom 2:4
Kindness, forbearance and longsuffering are attributes of God that flow to us by grace. God is not obligated to act in this manner towards man. He does not have to "lead us to repentance". Thus, the works of Romans 2, which are accompanied by faith and repentance, are not works done under the principle of debt/obligation - which Paul will attack in Romans 4:4. These works are done under the principles of trusting faith and grace.
Jesus is no different. He consistently makes our salvation contingent upon our obedience to God. However, this obedience must be "greater than the Pharisees". This certainly cannot refer to more "deeds", the Pharisees were meticulous. What was different is clearly laid out in the Sermon on the Mount. Obedience to God must come from the heart - for God desires mercy, not sacrifice.
And thus, man still must obey the Law written by "the finger of God". What matters, throughout the OT and NT, is whether man is trying to place God under debt, or whether man is responding to God's grace with appropriate conversion of the heart and mind.
Thoughts?