Did Jesus Literally Walk on Water?

This post is part of my year long study of Calvin's Institutes of the Christian Religion.  To facilitate this course of study, I am following along with Princeton University's "A Year with the Institutes", which also includes an audio reading of the text.

Calvin's Institutes - 1.8.5-13

2 Timothy 3:16 - "All Scripture is breathed out by God and profitable for teaching, for reproof, for correction, and for training in righteousness."

I was having a conversation, with new friends, on the subject of the Bible.  The question posed to me, by them, was, "do you believe that Jesus literally walked on the water?  Do you believe that Jonah was literally in the belly of a great fish?"

I believe that the Bible in the literal, inerrant, God breathed text for us to know God, and to lead us into saving faith.

To me, choosing particular sections as allegory, or perhaps some parts not applicable to us in the 21st century is very dangerous territory.  In my view, if natural man has any ability to say, that any part of the text is not true, then the entire text must be discarded, and no parts may lay claim to possess true truth.

So, what are we to say to those who don't hold to this high view of Scripture?  Here is a quote from Calvin's last paragraph in this section:

"But those who wish to prove to unbelievers that Scripture is the Word of God are acting foolishly, for only by faith can this be known."

It is real clear to me that I am not to judge whether someone is, or isn't a genuine member of God's elect.  However, here are a few questions for us all to consider in our walk:

1. Is it possible for one to not believe in a literal interpretation of the Scriptures, and still be, with certainty, in the Lamb's book of Life?
2. If the text is not literal, and/or inerrant, who decides which parts are not God's literal words to us?  If not literal then perhaps Jonah wasn't in the belly of a fish, or Jesus did not walk upon water, perhaps Jesus words of only one way to heaven are not applicable, maybe Jesus doesn't really forgive sins, maybe Jesus was not really God, and on, and on...

I suspect Calvin would suggest that a man who doesn't hold to a high view of Scripture, would therefore possess a misguided faith.

What say ye?