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I linked to the Bible Answer Man from Albert Mohler's personal website. This is what he has to say, which further makes me think Mohler's comments were taken out of context:

Statement: CP0802

CATHOLICS AND SALVATION

Some people say that the Catholic church teaches salvation by works. Is this true?

To begin with, let me state up front that Catholics do not teach salvation by works. In fact, the Catholic church firmly maintains that man can only be saved by God’s grace. However, ask Catholics whether they believe that they are justified by faith alone and chances are pretty good you’ll get “no” for an answer. Consequently, some evangelicals have mistakenly concluded that Catholics hold to salvation by works.

Justification, to evangelicals, means that God declares us righteous the instant you or I repent and receive Jesus Christ as our Lord and Savior — and this, despite our sinfulness. Actually, it’s a singular event, something that is completed instantaneously. Catholics, on the other hand, understand justification to mean that God makes us righteous. It’s seen as a process whereby God gradually perfects us; and this is, incidentally, why Catholics believe that only in the end will believers be sure as to whether they’re truly justified or saved.

In addition, evangelicals believe in justification by faith alone. And by faith we mean not only knowledge and agreement, but also personal trust in Jesus Christ alone for eternal life. In sharp distinction, Catholics see faith as nothing more than passive agreement, which again is why they don’t believe in justification by faith alone. Catholics actually consider human works as vital elements in the process of justification. This is because they are held to be the result of God’s grace working through and perfecting believers.

Well, in sharp contrast to the evangelical belief that works are the fruits of justification, Catholics say that justification results from a combination of faith and works made possible by God’s grace. Yes, we regard the Catholic conception of justification to be confused. Yes, we take serious issue with the numerous doctrines and practices that it has produced. Though they can be rightly faulted on these points, no one can legitimately claim that Catholics teach a crass system of salvation by works.

So, once again, it is important to understand that while many Catholics believe in salvation through works, the official stance of Roman Catholicism is that justification results from a combination of faith and works which is made possible by the grace of God.

On Catholics and the doctrine of salvation, that’s the CRI Perspective. I’m Hank Hanegraaff.

FOR FURTHER INFORMATION

An edited transcript of the dialogue between Walter Martin and Father Mitchell Pacwa entitled “Justification By Faith: A Catholic-Protestant Dialogue,” is available from CRI (DC126/$0.25). Additionally, discussions of the subject are included in the following book, Roman Catholics and Evangelicals: Agreements and Differences by Norman Geisler and Ralph MacKenzie, available from CRI (B196/$25). These resources are available through CRI. For shipping and handling information, please refer to our Resource Listing. To place a credit card order, call toll-free (888) 7000-CRI. To receive a free copy of our Resource Listing, fax us at (714) 858-6111 or write us with your request at P.O. Box 7000, Rancho Santa Margarita, CA 92688-7000.