Correct me if I'm wrong, but I understand that Islam regards Jesus as a prophet as well as the messiah? Does this mean that Jesus is equal to Muhammad in a prophetic status and if that is so, why does Muhammad seem to have a elevated status in Islam if he is merely a prophet?
Jesus Christ (alaihi salaam) was a true prophet of Allah, he is indeed the Promised Messiah (Maseeh Mawood), and Islam teaches that he will return near the end of this world to put an end to christianity - he will break the cross and kill the swine.
We Muslims believe in all Prophets equally, making no distinction between them with regard to their truthfulness. However, Prophet Muhammad (sallallahu alaihi wa salaam) is the Seal of Prophets (Khatamun Nabiyeen) there will come no prophet after him and through him Allah Azzawajal has completed the religion of Islam.