Before I answer the question, let me enumerate an additional definition. I think that this inclusion would help illuminate the conclusion.
$$
(1)~~~V \rightarrow \lambda\mu\lambda\nu.\sim.\sim\mu.\sim\nu
$$
$$
(2)~~~U\rightarrow \lambda\mu\lambda\nu.\sim.\mu.\sim\nu
$$
$V$ is the function OR, $V(\text{P},\text{Q}) \equiv [\text{P}] \vee [\text{Q}]$. $U$ is the function IMPLIES, $[\text{P}] \Rightarrow [\text{Q}]$. $Q$ is the function for equivalence, $Q(\lambda x.\text{M}, \lambda x.\text{N})$ is read as $[\text{M}] \equiv_x [\text{N}]$.
If we look at the function $\neg(\text{P} \wedge \neg \text{Q})$, note that $\neg \text{X}$ and $\sim\text{X}$ are merely varying notation according to Church's definitions, we can reduce that to $\text{P} \Rightarrow \text{Q}$.
If we now look at the function $\neg (\neg\text{P}\wedge\neg\text{Q})$, we can reduce that to $(\text{P} \vee \text{Q})$.
Both of these propositional functions share form and consequence with (1) and (2) respectively.
The question is then not simply how the function $V$ is reduced in Church's $\lambda$-Calculus, it is how P and Q interact with one another in the function, since $\sim$ is a function that takes only one argument. That argument is therefore then a conjunction of the two arguments, in (1): $(\sim\mu\wedge\sim\nu)$, and in (2): $(\mu\wedge\sim\nu)$.
It is probably an issue of not being able to substitute correctly. Intuitively P goes into the function to the left, but then that gets a truth value and is no longer a function.
$$
\{\{\lambda\mu\lambda\nu.\sim.\sim\mu.\sim\nu\}(\text{P})\}(\text{Q})
$$
$$
\{\lambda\nu.\sim.\sim\text{P}.\sim\nu\}(\text{Q})
$$
$$
\sim[\sim\text{P}][\sim\text{Q}]
$$
$$
[\text{P}] \vee [\text{Q}]
$$
The penultimate step should perhaps be more correctly expressed as $\sim[\sim\text{P}[\sim\text{Q}]]$, but it does not lend as much understanding I think.
I've spent some time pondering this problem, and I believe that I have come to the correct conclusion. If anyone disagrees with me, I am sure they will make themselves heard.
I'm sorry that I cannot be more specific as to what extension it is, because that is the paper from which I am working.
– gremble Dec 07 '14 at 08:24