Our evangelical culture has gone incredibly overboard in its emphasis on grace. This is especially evident in how many people have "prayed the prayer," call themselves "Christian," and yet show no evidence of fruit in their lives. John MacArthur recently had a four-day series on his Grace to You radio program that addressed this issue. The programs, based on the last portions of the Sermon on the Mount, can be found HERE, dated 9/2/2008-9/5/2008, entitled "Empty Words" and "Empty Hearts." I purchased his 20th anniversary edition of "The Gospel According to Jesus" and find it to be fantastic...and a very sharp critique of our "Christian" culture. (You can find a link to that book on the left.)
Another resource that I suspect will be interesting is a book by Puritan Samuel Bolton entitled, "The True Bounds of Christian Freedom." (HT: Tony at For His Glory). I intend to read this book soon! A quote that Tony point out encapsulates it well: "The Law sends us to the Gospel for justification; the Gospel sends us to the Law to frame our way of life." Wow!!!
As dads (and moms) who desire our children to walk in the way of our Lord, understanding true salvation and conversion is critical (MacArthur), and understanding the role of the Law in shaping our sanctification is crucial as well (Bolton).