As far as I'm aware, yes. They did away with the concept of limbo, which is where unbaptized babies would wait until the second coming.

I recall somewhere in this current Popedom that he has ruled out Purgatory, which only now gives us 2 options Heaven or Hell :o(

Yes they still do. I taught it in CCD recently. It was in the textbook I used to teach the class and it also is in the official Catechism as well.

It will always be a doctrine of the Church. 1 Cor 3:13-15 If any man builds on this foundation using gold, silver, costly stones, wood, hay or straw, his work will be shown for what it is, because the Day will bring it to light. It will be revealed with fire, and the fire will test the quality of each man's work. If what he has built survives, he will receive his reward. If it is burned up, he will suffer loss; he himself will be saved, but only as one escaping through the flames.

Sure, is there something similar in othere religions that you know of?

Yes, it does, but it is often downplayed these days.

You betcha'! Nice 'stop-gap' measure, no? ;-)

Yes it is an unchanging dogma of Catholicism. The souls of those detained in Purgatory are saved but because of sin committed while on earth, they must undergo purification in order to enter into the presence and infinite holiness of God. Look at it like this, whenever we use the same cup every day from which to drink coffee it becomes stained because of the nature of the coffee, and the cup needs to be cleaned, sin also by it`s very nature stains the soul and leaves it less than it should be. God of course forgives us our sins when we repent but He does not remove the stain it leaves,this is something that we are responsible for ourselves. We can do much to purify our soul while still on the earth by way of penance and scacrifice which simply speaking is as effective in cleanint the soul as having a shower cleans the body. If we neglect to use the mode of penance then any stains on our soul will have to be removed after we die, and this is the role of Purgatory, which in itself is another projection of God`s wonderful mercy if we only knew it. This is a simplified explanation of the Catholic dogma of Purgatory.

Yes. + Purgatory + The concept of purgation is hinted at in the Bible. Here are a few of places: "But if someone's work is burned up, that one will suffer loss; the person will be saved, but only as through fire." (1 Corinthians 3:15) "So that the genuineness of your faith, more precious than gold that is perishable even though tested by fire, may prove to be for praise, glory, and honor at the revelation of Jesus Christ." (1 Peter 1:7) But the souls of the just are in the hand of God, and no torment shall touch them. They seemed, in the view of the foolish, to be dead; and their passing away was thought an affliction and their going forth from us, utter destruction. But they are in peace. For if before men, indeed, they be punished, yet is their hope full of immortality; Chastised a little, they shall be greatly blessed, because God tried them and found them worthy of himself. As gold in the furnace, he proved them, and as sacrificial offerings he took them to himself. (Wisdom 3:1-6) Are you perfect now? Most people would say no. Will you be perfect in heaven? Most people believe yes. Purgatory (or purgation) is the process of God's love changing our imperfect selves on earth into perfect beings in heaven. Depending on the amount of change needed by different people, this can be an easy or slightly harder process. Everyone in purgatory is on his or her way to heaven. I do not think Mother Teresa of Calcutta had a very hard time of it. For more information, see the Catechism of the Catholic Church, section 1030: http://www.usccb.org/catechism/text/pt1sect2chpt3art12.htm#1030 + With love in Christ.

then why hell? can we not all be cleansed?

yes

I think you're mixing up Purgatory with Limbo. Limbo was supposed to be the place where the souls of the unbaptized go if they were not evil enough to go to hell. Until very recently, unbaptized infants could not be buried in a Catholic cemetery. This practice was based on the doctrine of Limbo. After Vatican II (early 1960s), this doctrine has been largely discarded. The current Pope rejected the doctrine in the 1980s, when he was in charge of the Congregation for the Doctrine of the Faith. http://en.wikipedia.org/wiki/Limbo