(1) The official line from the Vatican is that Protestant faiths (and Orthodox, I'd wager) are still Christians, albeit in "imperfect communion", and are probably even saved.
The Catechism of the Catholic Church wrote:
"However, one cannot charge with the sin of the separation those who at present are born into these communities [that resulted from such separation] and in them are brought up in the faith of Christ, and the Catholic Church accepts them with respect and affection as brothers .... All who have been justified by faith in Baptism are incorporated into Christ; they therefore have a right to be called Christians, and with good reason are accepted as brothers in the Lord by the children of the Catholic Church."
"Furthermore, many elements of sanctification and of truth" are found outside the visible confines of the Catholic Church: "the written Word of God; the life of grace; faith, hope, and charity, with the other interior gifts of the Holy Spirit, as well as visible elements." Christ's Spirit uses these Churches and ecclesial communities as means of salvation, whose power derives from the fullness of grace and truth that Christ has entrusted to the Catholic Church. All these blessings come from Christ and lead to him, and are in themselves calls to "Catholic unity."
(2) You can be a good Catholic, a bad Catholic, a nonpracticing Catholic or even an excommunicated Catholic but once the Holy See puts its spiritual brand on you, you're a Catholic for life as far as its concerned.