In regards to the debate of whether we get into heaven based upon faith or by works, the answer would be both.
I quote James 2:22-26 NKJV -
22-Do you see that faith was working together with his works, and by works faith was made perfect?
23-And the Scripture was fulfilled which says, "Abraham believed God, and it was accounted to him for righteousness." And he was called the friend of God.
24-You see then that a man is justified by works, and not by faith only.
25-Likewise, was not Rahab the harlot also justified by works when she received the messengers and sent them out another way?
26-For as the body without the spirit is dead, so faith without works is dead also.
As this passage clearly states, the two operate hand in hand.
BTW the preceding verses talk about Abrahams decision to sacrifice his son on the alter to God, in accordance to Gods command, holding onto that promise delivered by God that Abraham would be "the father of many nations." By preforming the seemingly contradictory action of sacrificing his only son, Abraham proved by his actions(works) that he had faith in God to provide a way out, therefore fulfilling his(God's) promise. Of course, God came through in the end, providing a ram as a sacrifice instead of Isaac.
The same concept applies to this debate. To achieve salvation, you need to both a) have faith in God that he will save you and b) follow his commands laid out in the Bible (ie. Ten commandments, etc.) This constitutes both faith and works, not just one or the other. Therefore, the statement that Peter and Paul are contradicting each other is false. They are both in fact correct.
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