Frank: where did you find this bit about dragons?
It's in Chapter 18 of the Gospel of Pseudo-Matthew: 'And, lo, suddenly there came forth from the cave many dragons; and when the children saw them, they cried out in great terror. Then Jesus went down from the bosom of His mother, and stood on His feet before the dragons; and they adored Jesus, and thereafter retired'
If people believe in god, they do believe in magic.
Only the magic of miracles is congruent with religious beliefs. Of course, magic construed as parlor tricks is quite fine.
Isn't there a story where one of the saints, I think it was Peter, has a magic rap-off with a wizard or something where each performs miracles such as levitation and fireballs and then the wizard kills himself just before he pulls off this epic stunt. I might be wrong; it's been a while before I read the new testicle.
EDIT: Found it. It was Simon Magus. Heres the link: http://en.wikipedia.org/wiki/Simon_Magus
they think its bogus hahaha the irony!!