I just have to add that there's even Roman Catholics who don't consider Protestants, Christian. There's even Roman Catholic priests who refused to honor the sacraments to Christians who are not baptized within the RC church; however, I do not know if that is a church policy/law issue (hence theological) or the personal theological issue of the priest in question.
I say it goes both ways, and the best way is to educate and accept with open hearts.
I also find it funny that in the past some of my Roman Catholic friends are also just as confused as the term. Some of them would say, I am Catholic! not Christian, and I would end up like :ohreally:
And I agree that some people don't even like the term catholic (note the small case letter) because they thought it was Catholic and have their own little definition of it.