What the Pope said:
http://www.catholicnews.com/data/stories/cns/1004842.htm
The pope answered: “No. It is one thing to say that they are human beings with their problems and their joys, that as human beings they deserve respect, even though they have this inclination, and must not be discriminated against because of it.”
“At the same time, though, sexuality has an intrinsic meaning and direction, which is not homosexual,” he said. “The meaning and direction of sexuality is to bring about the union of man and woman and, in this way, to give humanity posterity, children, a future.”
The pope said the church needs to hold firm on this point, “even if it is not pleasing to our age.”
“Homosexuality is incompatible with the priestly vocation. Otherwise, celibacy itself would lose its meaning as a renunciation. It would be extremely dangerous if celibacy became a sort of pretext for bringing people into the priesthood who don’t want to get married anyway,” the pope said.