To help clear up the issue of faith:
The entire idea of "faith" is that you BELIEVE in something without ever
having proof or ever being able to have proof that it is. That's what faith
is. If you knew something existed and you said it didn't, that'd just be
stupidity, on the other hand if you know something exists and you accept
that it does, that's just common sense. Faith is trusting your intuitions to
accept something that you know you may never understand.
As for the pope having his own country, Vatican City isn't really a country,
it's more of a state. The reason behind it is that the church needs to have
their own laws (Canon laws) in order to operate fully. Now anyone who is
a "citizen" of this state (meaning people who work for the church, priests,
bishops, etc) have the same sort of rights that embassadors have. If
they are found to have committed a crime, they can be tried under
Canon law or the law of the country in which they reside. This decision
is made by the church. Keep in mind that most bishops are actually a
form of lawyer. They study Canon law.
This is one of the reasons that China has many problems with Christians,
because they see all Christians as being citizens of Vatican City, and
since it is unlawful to be a citizen of more than one place in China,
there are some problems. ;\
.opt