How can the following two Hadiths be reconciled: "By Him in Whose Hand my soul is, I have considered ordering firewood to be gathered, then commanding the prayer to be announced, then appointing someone to lead the prayer, and then going to the men who do not attend the prayer and burning their houses down upon them," and "Every Muslim's blood, property, and honor are sacred to another Muslim"?

There is no contradiction between the two hadiths. The Prophet, peace be upon him, said: "Every Muslim's blood, property, and honor are sacred to another Muslim" in cases where there is no deserving of a prescribed legal punishment. The noble verse "And do not kill the soul which Allah has forbidden, except by right" particularizes the general meaning of the hadith (definition). So, whoever kills intentionally, or commits adultery while being married (muhsan), or apostatizes from the religion, their blood is permissible. Likewise, the one who abandons prayer, their blood is not permissible except by way of a prescribed punishment.

His saying, peace be upon him: "By Him in Whose Hand my soul is, I was about to order that firewood be collected, then I order the prayer, and the call to prayer be made for it, then I order a man to lead the people in prayer, then I go to men [who have not attended], and burn their houses down upon them," concerns those who fail to attend congregational prayers. These are often the hypocrites who stay away from prayer out of disdain, and thus they deserve punishment for abandoning prayer. The Prophet, peace be upon him, refrained from burning their houses because of the women and children inside, upon whom congregational prayer is not obligatory.