Muslims: Is Islam a religion of peace?

How can that claim be made in light of Mohammed's words: "I have been made victorious through terror." and "Our onslaught will not be a weak faltering affair. We shall fight as long as we live. We will fight until you turn to Islam, humbly seeking refuge. We will fight not caring whom we meet. We will fight whether we destroy ancient holdings or newly gotten gains. We have mutilated every opponent. We have driven them violently before us at the command of Allah and Islam. We will fight until our religion is established. And we will plunder them, for they must suffer disgrace" (Ishaq:587)? Can you explain how this is a message of peace?