@Bill Maxwell,
Bill:
Good question. Now as Paul Churchland has outlined, folk psychology i.e use of concepts such as beliefs desires etc. are here to stay. In fact, he himself (as well as other proponents of EM) uses wording such as "I believe" in his own work!
Yet the rejection of such statements is in their use, descriptive and epistemological use. That philosophers have for the longest time justified their beliefs in deductive reasoning that end at the concept of "belief" itself is what Churchland is trying to get at here. Again, this is a refutation of folk psychology (so in this case, maybe I was being too eager in displaying my philosophical knowledge when answering the question "do you
believe in fate or destiny"). Thus, more developed philisophical systems go further than just "I believe" such and such and base it on their understanding of reality as they have systematicaly studied it.
However, what Churchland is ultimately getting at is that there are no solid "beliefs" as custom has them appropriated. That is, if someone believes in God, for example, it is not a spiritual, transcendental, immaterial belief as such...instead, it is simply the way our brains store information. Therefore, it gives the truly rational, descriptive and legitimate answers to why person X believes in God to neuroscience. So, we may imagine, that a person believes in God not because he has a spiritual connection with him and "feels" God or even "loves" (love as in something immaterial and thus transcendental) God, but because of the organization of his material brain and its respective processes.
So what it comes down to is the common (folk) use of these terms and how they relate to ones psyche (thus, folk psychology).
I hope this answers your question.