What is the Catholic Position on Whether the Prophet Mohammed was
Truly Inspired by God?

Generally, all the major Christian faiths hold that belief in  Jesus's
atonement is the only way to grace.
Here's a link:
http://en.wikipedia.org/wiki/Salvation

If the Roman Catholic church had such a position on Mohammed, he would
have to be considered a saint, which certainly is not the case.
I seriously doubt that the Vatican has recently  - or will in the near
future -  express an opinion on the subject.  In the past, at the time
of the Crusades, I expect that he was to have been inspired by the
devil, an attitude the Church has taken against individuals of much
less reknown and influence.

This article may be of interest:

http://hnn.us/articles/11269.html

Thanks pinkfreud, the link was very insightful.

Both Chritians and the Muslims who truely believe in one God will
respect and believe in each others book and God which is the same.

One can disagree but still respect others religion and belief.