I trust that you have read all of this, especially the final paragraph, "Anyone who receives the sacrament of baptism, whether in the Catholic Church or in a heretical or schismatic one, receives the whole sacrament; but salvation, which is the strength of the sacrament, he will not have, if he has had the sacrament outside the Catholic Church [and remains in deliberate schism]. He must therefore return to the Church, not so that he might receive again the sacrament of baptism, which no one dare repeat in any baptized person, but so that he may receive eternal life in Catholic society, for the obtaining of which no one is suited who, even with the sacrament of baptism, remains estranged from the Catholic Church"
So, which is correct - this or Pope Benedict's statements?
Both. There is not a conflict between the two. It is only when one begins with a conclusion and seeks to prove it with selected information instead of drawing on all information to reach a conclusion the conflict seems to be.
First of all, regarding the "last paragraph", neither Fulgentius of Ruspe not the paragraph itself are 'dogmatic'. Simply the opinion of yet one more theologian, although certainly shows a pattern of thought. Is it not important to look at culture? This is pre-schism, pre-Reformation -- so cannot be construed to damn Orthodox and Protestants (or Catholics and Protestants from the Orthodox point of view).
In all of the above, here is your key:
However, for those who
knowingly and deliberately (that is, not out of innocent ignorance) commit the sins of heresy (rejecting divinely revealed doctrine) or schism (separating from the Catholic Church and/or joining a schismatic church), no salvation would be possible until they repented and returned to live in Catholic unity.
So, ask yourself and answer the question. Have you knowingly and deliberately rejected divinely revealed doctrine and refused to enter the Catholic church?
Because if your answer is no, then the Catholic church would consider you to be in innocent ignorance. A title you may not believe is applicable, but remember, we're talking about what the Catholic church teaches here, not you.
This is why there is no conflict, especially hundreds of years after a major breach in Christian unity, for Pope Benedict to say "It is possible, according to Catholic doctrine, to affirm correctly that the Church of Christ is present and operative in the churches and ecclesial Communities not yet fully in communion with the Catholic Church, on account of the elements of sanctification and truth that are present in them."
Another little point -- the Catholic church had not and never will make any authoritative statement about the ultimate damnation of any individual person. It is a role that belongs only to God. Given that, it's hard to understand how one could profess that the church teaches any 'group' of people are damned.
So my turn -- to what benefit is it to continue to portray the Catholic church as teaching something it does not?