I do believe the Bible should be interpreted literally... but that's NOT the end of the story. Torah is understood at multiple levels, and like the land which was unique for each tribe, each person understands Torah in their own unique way. There's an acronym for the ways in which to interpret Torah: PaRDeS. The word 'pardes' literally means 'orchard', and is related to the word 'pardis' in Arabic, which has become our English word 'paradise'.
PaRDeS stands for:
http://www.kolel.org/graphics/pardes.gifPshat - Literally it means 'simple', the plainest meaning of the text.
Remez - It means 'hint' and refers to the alluded meaning of the text, reading between the lines. Remez also includes gematria (Hebrew letters having numerical values... look this one up on your own).
Drash - Drawn-out, homiletical meaning. The word 'midrash' comes from the same root word as drash. It's an interpretation that is not explicit in the text. May teach a specific or practical lesson.
Sod - Literally 'secret', referring to the hidden, esoteric meaning to the text.
So as you can see, yes, one should start with a literal, simple interpretation and reading of the text. But no, no, no, it does not stop there. Keep digging and climbing in the orchard of meaning. You're sure to find some lovely fruit.
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