Is there salvation for Muslims?

I heard from a Protestant minister that Muslims don’t worship the same God as us and go to hell. Is that true?

Short Answer:
Each is judged according to how they respond to whatever they've been given, and God alone makes that judgment of the soul.

Long Answer:
Here’s the true but unpopular Truth: the Catholic Church is like Noah’s Ark, if you’re not on it (or at least clinging to the sides), you’ll drown. Or better put, the Church is like Peter’s fishing boat and it’s our responsibility, as Fishers of Men, to bring souls to Christ.

Jesus is the only way to heaven. He made it possible for us to get to heaven by his death on the cross, which is made present at every sacrifice of the Mass. So it is that the Catholic Church is indispensably linked to the salvation of every person anywhere, of any religion. Jesus sits in Peter’s boat and preaches from there.
There are different degrees of separation from and affiliation to this one True Church. We can hash out our relationship with the Orthodox, Protestants, Hindus, Buddhists and Packer Fans some other time. I’d like to get right to your question on Muslims.

Muslims worship the same One True God that we do. Along with ourselves and the Jews, they profess the faith of Abraham. Nevertheless they do not realize the Trinitarian nature of God: that the one God is three Divine Persons. It’s like they’re listening to the same song that we are on the radio, but they’re miles out with shoddy antennas and don’t have good reception, unable to hear the words and melody that we hear clearly.

God wants everyone to get to heaven, even those with shoddy antennas. That’s what He made us for, though it is within anyone’s power to reject God's desire for us and to go to hell instead. If someone is outside the Catholic Church, salvation is still accessible to them through the grace of God working with them where they're at. This grace has a mysterious relationship to the Church, since God always works through His Church and He reaches outward from His Church to connect to the lives of those outside it.

All then are judged according to how they respond to the graces they are given. This is quite different from the common conception that all religions are something like spokes on a wheel that lead to the same center. It’s not the case that all religions teach the same things but worship in different ways. In fact, we teach different and often contradictory things, while we actually have great similarities in the way that we worship. Incense, altars, priests, singing, sacrifices and sacred texts can be found in most religions.

If someone recognizes the fullness of Truth in the Catholic Church but refuses to enter it (or decides to abandon it), then yes, that is a gravely sinful decision and is a pretty serious place for that soul to reside. Realistically though, most people of other religions probably aren’t Catholic because the Truth has never been fully presented to them, not because of malice. We can’t read the state of souls, so we presume their innocence.

It seems a much more damnable offense to know the Truth and not seek to bring others to it, than to not live by the Truth because no one shared it. If others don’t know the Truth it may be more our own fault than theirs.

We are called to love, not to judge, and so in genuine love we must speak the truth. We must bring onto the boat those souls drowning in ignorance or confusion. All aboard!

Further Reading:
Lumen Gentium  sections 14-16.