...For starters, there's always the question as to whether a particular passage is to be understood as literal or as metaphorical. Did a particular event actually happen or was it a parable? Who was the audience? Do the words in a particular verse apply to humanity as a whole or only to the individuals to whom they are directed?
I think those are clear in the Bible, if read the whole text.
...What about matters where there appears to be a contradiction? (If you tell me there are no such instances, I'll know you haven't studied the Bible much at all.)
No one has been able to show real contradiction in the Bible. People have only managed to show contradictory interpretations.
...The supposedly simple and straightforward question of whether we are saved by faith or by works can be argued both ways, simply by using certain verses and ignoring others. ...
Yes, and the ignoring others is the problem. People should read the whole book and remain in the truth and not add own meanings to it, because they cause most, if not all problems. One problem with salvation issue is, what people think it means and what Bible tells it means. By what I have understood, salvation means that sins are forgiven and so person is saved from the judgment that would come because of sin. The forgiveness is offered freely, and no one has done anything to deserve it, it is a free gift.
Different matter is, who and why gets eternal life. Bible tells eternal life is a gift for righteous people. Righteous people are loyal (faithful) to God and do good works, because they understand it is good and right. And I think that is where the problem with works and faith comes in. Some seem to think it is faith or works that makes person righteous. It is not so, it is righteousness of person that makes him faithful (loyal) to God and to do righteousness. As Jesus said, by fruits we know them. If person is righteous, it comes visible in actions. Righteousness can be called also wisdom of the just.
These will go away into eternal punishment, but the righteous into eternal life.
Mat. 25:46
For the wages of sin is death, but the free gift of God is eternal life in Christ Jesus our Lord.
Romans 6:23
…Whoever is born of God doesn't commit sin, because his seed remains in him; and he can't sin, because he is born of God. In this the children of God are revealed, and the children of the devil. Whoever doesn't do righteousness is not of God, neither is he who doesn't love his brother.
1 John 3:7-10
So, works don't save, but they tell who is righteous. And if person is righteous, he gets eternal life. If someone disagrees with this, I would expect him to show scriptures that tell otherwise.
...For example, John 6:53-56 (KJV) says:
"Then Jesus said unto them, Verily, verily, I say unto you, Except ye eat the flesh of the Son of man, and drink his blood, ye have no life in you. Whoso eateth my flesh, and drinketh my blood, hath eternal life; and I will raise him up at the last day. For my flesh is meat indeed, and my blood is drink indeed. He that eateth my flesh, and drinketh my blood, dwelleth in me, and I in him."
If you were to tell me what that means, you would be interpreting the words of scripture..
I think also that’s correct meaning comes clear, if you read more. Disciples didn’t eat the real physical body of Jesus, which is why I think it should be clear for all that it is about something else. Also, because Jesus continues by saying:
It is the spirit who gives life. The flesh profits nothing. The words that I speak to you are spirit, and are life.
John 6:63
Jesus also said:
Then he took a loaf of bread, gave thanks, broke it in pieces, and handed it to them, saying, “This is my body, which is given for you. Keep on doing this in memory of me.” He did the same with the cup after supper, saying, “This cup is the new covenant in my blood, poured out for you.
Luke 22:19-20
There are 3 possible meanings for blood and body, in the Bible, one is the actual physical body of Jesus, one is the bread and wine and one is his word and the spirit of God. Because Jesus says John 6:63, I think the words are the thing that gives lie.