Yep- Toxoplasma gondii is the organism that was mentioned. As kito mentioned, it is a parasitic organism. It is an organism that must be ingested to be passed to a new host, but does not affect the respiratory system. Lots of cats, dogs and even people carry it asymptomatically, but can pass through the placenta if infected during pregnancy and cause horrible birth defects (We saw pictures in my veterinary parasitology class).
Good reason to wash your hands after kitty litter.
As for the bugs, I would guess maybe they are flour moths or something similar? They could probably thrive in there, and they are darn hard to get rid of. Luckily they are harmless.
As for CFers it is definitely a good idea NOT to breath in cat litter. While most of the bacteria is gastro-intestinal, the litter itself is FULL of chemical dust. Not stuff you want stuck in there!
Wow, that was like an essay <img src="i/expressions/face-icon-small-wink.gif" border="0">