My answer to the OP (which is admittedly not as learned as those above but makes sense in my muddled brain):
The Bible as we have it today is obviously not without error, as Andreas's priest pointed out above. There are some practical things in the Gospels which don't line up. This could be caused by any number of human errors that we've already discussed. I don't know about you, but a variance in the number of demoniacs between Gospel accounts isn't going to shake my faith, nor do I even consider it relevant to fallibility. The Gospels aren't prophecy, nor are they instruction in the way the Epistles are. They are accounts of the life of Christ by people who walked with him on Earth and probably weren't taking notes (especially since most of them couldn't write.) There's no doubt in my mind that God told them to write these accounts, but like others have said I don't believe God sent them down like the Commandments, nor did he dictate them to the Apostles (after all, the whole point is they were there when this stuff happened.) So, I don't see acknowledging these flaws as undermining the authority or authenticity of Scripture in any way.
I feel I should qualify that by saying that acknowledging errors in historical accounts (including the Gospels and the OT) in no way implies errors in any of the Epistles or in Christ's teachings (which to my knowledge line up in the Gospels anyway.) So, I'll admit that the Gospels don't always agree on details, but that's not saying I think Paul could have meant that we should
not pray without ceasing, and maybe he just mixed up his grammar. I know that's an exaggeration, but I've heard arguments along those lines before.
So what I'm saying in my roundabout way is that I see the Bible as infallible (I'll pre-apologize for this comparison

) the way Catholicism sees the Pope as infallible. "Infallible" doesn't mean "perfect all the time," it means "perfect when it matters." So, they believe that when the Pope speaks about very important things under very specific circumstances, that he's speaking the absolute God-inspired truth, but if he's talking to his cousin and says "The '64 RedSocks were the best team in the history of baseball" that's not necessarily true.
That kind of my impression about the Bible. All of its books are the result of Divine inspiration, and none of the teachings of the Old Testament, nor of Christ or his Apostles have been distorted in any way. The Holy Spirit guided the men who compiled the Bible, and I believe all the books in the canon deserve to be there. These things are important. What's not so important is the exact number of people present at which events, whether or not "gopher wood" ever existed, stuff like that.
My long-winded opinion which is in no way meant to reflect or represent official Church doctrine.