This is the one thing I still struggle with about religion and how I feel about it.
My background is rather liberally religious. I've said it before, but I grew up in a "moderate religious" family. Half Jewish/Half Catholic... I think I've gone through my journey here (if not, you can see my deconversion letter on RichardDawkins.net).
Anyways, the evangelical Hell was something I never believed in, and it was works and deeds (not faith, though that was important) that got you into Heaven.
I also have seen faith work a number on my Dad. Before he became a Hazzan, he was... shall we say, not a pleasant person. Once he became a Hazzan, the change in him was amazing. (What seemed like) His faith in God made him a happier, better, more controlled, less angry person. This is just one example.
On the other hand... I fully and completely "believe" that believing in God is akin to an adult believing Santa Clause is real, or such. The phrase "adults with imaginary friends are stupid" is my background on my desktop. The only reason I'd hesitate in calling a Young-Earth Creationist retarded is because I want to avoid insulting the Mentally Retarded. I don't believe in God in the same way I don't believe in fairies, unicorns, leprechauns, etc. I am an outspoken defender of Evolution, because it's reality.
So I'm stuck right now on how I feel about faith. On the one hand, it's a delusion. On the other, that delusion [made my Dad a better person; for one example of numerous times seeing others, especially in my family, be happier believing in God then not believing in God].