Many Catholics as well as outsiders to the church do not properly understand Papal Infallibility. Papal Infallibility does not mean that anything the Pope says is true. Papal Infallibility is only possible when issuing dogmatic teachings regarding faith or morals. The infallible part is only concluded when he states that it was received through devine revelation. The last time that this was done was 1850 in regards to Mary's place in the religion (https://en.wikipedia.org/wiki/Assumption_of_Mary). Otherwise, the statements made by the Pope are his statements and are not subject to infallibility.
https://en.wikipedia.org/wiki/Papal_infallibility
There are other infallibilities that can confuse issues such as: bibical infallibility and church infallibility. However, what Papal Infallibility doesn't mean is that anything the Pope is right by the Holy Spirit.
Edited: Vincenzo on 11th Jul, 2007 - 9:32am
Very interesting, I had heard the term before but never really understood what was being implied by it. Very much the same way many of the leaders in the Old testament were infallible when being lead and actually following Gods will.