The Galatians were saved but they were attempting to live by the flesh and so they made the grace of God of no effect - not working - in their lives.
People are still saved ( as in going to heaven when they die because they are "in Christ" - the inner man in Christ is created in righteousness and holiness and is one spirit with the Lord ) even though they live by the flesh in some area.
All works of the flesh bring some sort of destruction to our lives while we are here on this earth. That's why it is vital to learn how to walk by the spirit.
Galatians 3:3 (NASB)
[SUP]3 [/SUP] Are you so foolish? Having begun by the Spirit, are you now being perfected by the flesh?
It's very easy to see the malice in people living by the flesh - we just need to read some posts.