(I'll do this incrementally, since trying to get it all down at once has prevented me from starting it for over a year (as of December 2010).)
The fundamental basis of my understanding is that there are two sources of belief: external evidence and internal revelation. Both are necessary for a full understanding of life, which I'll get to eventually. I think these correspond to the two sides in the fight, interestingly enough. This also informs my understanding of how a believing Christian can also believe in the separation of Church and State. [To be continued.]
My main point is that Creationists are mistaken in two ways:
As for the first point, let me start by saying that there's no reason to think that "believing the Bible" requires one to believe in a "6 day plus rest" creation around 4000BC (or within the last 10,000 years, or whatever). There are lots of problems with the Creationist point of view, without even getting into evolution. (An important thing to note is that by "Creationist" I mean people who support things like "creation science"; people who think that there's observable physical evidence of the Biblical account. If you believe the Genesis account is literal, but that God or the Devil managed to make things look really old, that's okay with me. Just as long as you don't expect the physical world to look like it was made 6000 years ago. See this for more.)
Just so the Creationists aren't too peeved, let me jump ahead to the first point on the other side: there's way too much good luck involved in the way the universe is set up. (Some of this is informed by Francis Collins' excellent book "The Language of God".)
The Bible talks about time in funny ways; "a thousand years are like a day" to God, and a lot of other similar stuff. A lot of Biblical references to time were always puzzling to people. There have been big theological fights, for example, about where souls "go" between death and the last day. Are they doing something, "sleeping", or do they pop from the moment of death to the last day somehow?
Take as a clear example the Transfiguration: Moses and Elijah show up and talk with Jesus, in front of Peter, James, and John, and then go away again. So, where were they "in between" the time when they were taken away by God, and showed up to talk with Jesus? (Interestingly, they were both taken away by God at the end of their lives.)
So it's interesting to me that, starting with Einstein, physics began treating time as part of the physical universe. The flow of time is affected by things like velocity and gravity (and this has been experimentally verified). It isn't some fixed, unchangeable framework outside the universe, as people used to think of it.
So if time is part of the (created) universe, a lot of the confusing Biblical concepts start to make sense. Time is part of creation, and God is outside of that (as well as within it, too). From a viewpoint outside of the universe, the past and future both "currently" exist. It's like looking at the whole universe as a movie, from the outside. You could go backwards and forwards in time, and pop into it wherever you wanted.
This means that things like the Transfiguration are no problem, if God can just pop them from the point of their death to Jerusalem in about 30AD, and then pop them out of the universe again until the last day.
Similarly, where do souls "go" in between death and the last day? Nowhere. They leave the universe, and come back in on the last day. No problem. They aren't anywhere in between; they don't have to be.
This is of course all kind of conjecture; I'm not sure any church has adopted this viewpoint officially. But it seems entirely reasonable to me, explains a lot, and fits in seamlessly with modern physics.
Understanding Biblical miracles.