The Nature of Good Works

What is it that causes a believer's works to be acceptable before God, i.e. as good and righteous?  Does the believer become progressively more and more righteous in sanctification so that some thoughts, words, and deeds have been so "transformed" that they are acceptable because they are without any corruption or sin - inherently righteous?  How are we to think about the good works of believers?  Is salvation dependent, in some measure, on the righteous quality of those works or solely on justifying faith upon which good works stand?

Some thoughts:
There be no true lively faith except good works do follow.
There be no good and acceptable works except those that do follow from faith.
There is no righteousness that flows from our good works or resides inherently in them.

As Scripture affirms:

Whatsoever is not of faith is sin. (Rom. 14:23)

For all who rely on works of the law are under a curse; for it is written, “Cursed be everyone who does not abide by all things written in the Book of the Law, and do them.” (Gal. 3:10)
...the law is not of faith. (Gal. 3:12)

John Calvin, in Book 3.17.10 in the Institutes of the Christian Religion, wrote on this very question.  It is crucial as to how we understand the nature of the believer's good works, in order to not elevate them as to "to impair or destroy the doctrine of justification."

• 10. In this way we can admit not only that there is a partial righteousness in works (as our adversaries maintain), but that they are approved by God as if they were absolutely perfect. If we remember on what foundation this is rested, every difficulty will be solved.  The first time when a work begins to be acceptable is when it is received with pardon. And whence pardon, but just because God looks upon us and all that belongs to us as in Christ? Therefore, as we ourselves when ingrafted into Christ appear righteous before God, because our iniquities are covered with his innocence; so our works are, and are deemed righteous, because every thing otherwise defective in them being buried by the purity of Christ is not imputed.  Thus we may justly say, that not only ourselves, but our works also, are justified by faith alone. Now, if that righteousness of works, whatever it be, depends on faith and free justification, and is produced by it, it ought to be included under it and, so to speak, made subordinate to it, as the effect to its cause; so far is it from being entitled to be set up to impair or destroy the doctrine of justification. Thus Paul, to prove that our blessedness depends not on our works, but on the mercy of God, makes special use of the words of David, “Blessed is he whose transgression is forgiven, whose sin is covered;” “Blessed is the man unto whom the Lord imputeth not iniquity.” Should any one here obtrude the numberless passages in which blessedness seems to be attributed to works, as, “Blessed is the man that feareth the Lord;” “He that has mercy on the poor, happy is he;” “Blessed is the man that walketh not in the counsel of the ungodly,” and “that endureth temptation;” “Blessed are they that keep judgment,” that are “pure in heart,” “meek,” “merciful,”, they cannot make out that Paul’s doctrine is not true. For seeing that the qualities thus extolled never all so exist in man as to obtain for him the approbation of God, it follows, that man is always miserable until he is exempted from misery by the pardon of his sins. Since, then, all the kinds of blessedness extolled in the Scripture are vain so that man derives no benefit from them until he obtains blessedness by the forgiveness of sins, a forgiveness which makes way for them, it follows that this is not only the chief and highest, but the only blessedness, unless you are prepared to maintain that it is impaired by things which owe their entire existence to it. There is much less to trouble us in the name of righteous which is usually given to believers. I admit that they are so called from the holiness of their lives, but as they rather exert themselves in the study of righteousness than fulfill righteousness itself, any degree of it which they possess must yield to justification by faith, to which it is owing that it is what it is.

Grant, Almighty God, that as thou dost train us up with so much diligence and assiduous care, and regard us as dear and precious like an hereditary vine, - O grant, that we may not bring forth wild grapes, and that our fruit may not be bitter and unpleasant to thee, but that we may strive so to form our whole life in obedience to thy law, that all our actions and thoughts may be pleasant and sweet fruits to thee. And as there is ever some sin mixed up with our works, even when we desire to serve thee sincerely and from the heart, grant that all stains in our works may be so cleansed and washed away by the sacrifice of thy Son, that they may be to thee sacrifices of sweet odour, through the same, even Christ Jesus, who has so reconciled us to thee, as to obtain pardon even for our works. Amen. (Prayers of John Calvin from his Commentary on Hosea)