Basically he said, as an extreme example, if a male prostitute was to use a condom during sex, it was a step towards a better morality.
Pope Benedict wasn’t speaking ex-cathedra.
Nonetheless, the secular media, like clockwork, has declared that condoms are now allowed by all fornicators (not like dissident Catholics were following the teachings of the Church anyways).
So here is a short roundup of the better informed among us:
Pope Approves Restricted Use of Condoms? – M.J. Andrew, TAC
Understanding Pope’s Dilemma on Condoms – Jimmy Akin, NCRgstr
Condoms, Consistency, (mis)Communication – Thomas Peters, AmP
Pope Changed Church Condoms Teaching? – Q. de la Bedoyere, CH
A Vatican Condom Conversion? – Mollie, Get Religion
Pope: Condoms, Sex Abuse, Resignation & Movie Nights – John Allen
What The Pope Really Said About Condoms in New Book? – Janet Smith
Ginger Factor: Pope Approves of Condoms! – Jeff Miller, The Crt Jstr
The Pope and Condoms – Steve Kellmeyer, The Fifth Column
Pope Did Not Endorse the Use of Condoms – Fr. Zuhlsdorf, WDTPRS?
Did Pope Change Teaching About Condoms? – Brett Salkeld, Vox Nova