Faith Alone or Justified by Works: Do Paul and James contradict each other?

James says, "You are justified by works, and not by faith alone." Paul says, "You are saved...apart from works." How do we reconcile Galatians 2 with James 2? Do we have a contradiction? The Protestants cry "Faith Alone". The Catholics scream, "Faith Plus Works." And, the Atheists argue, "Contradiction!" Who is right?