That's what the video seemed to show.... You've really got to jump through some hoops to have James meaning something opposite to what he says very clearly. It makes more sense to be more critical of how Paul is interpreted. It's not a matter of saying faith alone Vs works alone.
And 'works' doesn't have to be taken as following all the Jewish food laws and circumcision etc., etc., that's what it seems Paul is getting at, not being a good person in general. The way I'm interpreting it right now, the Bible seems to be saying that faith in Jesus is absolutely necessary to be saved, and that is a gift unearned, but, you must also strive to be good and that is also necessary if you are to avoid punishment, even though none is perfect but God.
Otherwise James is being interpreted in a way that is frankly implausible... He's really very clear.
There is more room to manoeuvre with what Paul is saying unless you are really attached to a particular interpretation.
In a sense, one of the Lutheran hermeneutical principles tends to be that Homolegomena > Antilegomena, and the clear and overall biblical consensus rules over the outliers. This might need some explaining, but basically the Homolegomena refers to those books of the New Testament which had universal acceptance from nearly the beginning, the four Gospels, the Acts of the Apostles, the thirteen Pauline Epistles, 1 Peter and 1 John. The Antilegomena or "disputed writings" covers all the books which were disputed in antiquity, many eventually were included in the New Testament over time, but others weren't. These include the Epistle to the Hebrews, the Epistle of James, the Epistle of Jude, 2 and 3 John, 2 Peter, and the Revelation of John; but it also includes the Epistle of Clement (1 Clement), the Epistle of Barnabas, the Didache, the Shepherd of Hermas, and sometimes the (non-heretical) Revelation of Peter. This is why, for example, some ancient biblical codices such as Codex Sinaiticus include Clement, but not the Revelation of John.
So the basic principle is that the Homolegomena carries more "weight" in a sense, likewise, consensus and clarity is more important than outliers. If we see X over and over again, and then in one place it looks like it says Y, we don't then dismiss X in favor of what Y may look like; instead the question is how are both X and Y true?
If we see, time and again, that we are justified by God's grace alone, through faith, apart from our works; but then in James we read that we are justified by our works, do we then do away with justification by grace alone through faith in favor of justification by our works? Or do we see how the two can be reconciled together?
To that end, speaking from a Lutheran position, either:
1) James is not contradicting Paul and the general biblical consensus, and thus must be read in light of it or
2) James is contradicting Paul and the general biblical consensus, in which case James' position must be rejected.
The Lutheran approach has been the first one, rather than the second. Though Martin Luther himself, at least for a time, took the second, hence (in)famously accusing James of being an "epistle of straw".
Either Paul and James are in disagreement, in which case we go with Paul instead of James; or else Paul and James are in agreement, and James must be read in light of Paul. But Paul is never to be read in light of James.
-CryptoLutheran