The format definition
\DeclareFieldFormat{titlecase}{\MakeSentenceCase{#1}}
makes all titles in sentence case, which isn't what you want. Titles need to be printed according to both the entry and field types. For example, with the title field we need to handle @article and @book entries differently. With @inproceedings entries we need to handle the title and booktitle fields differently.
To do this we can redefine the title bibmacro to print the title field of @article and any @in* entry type in sentence case. Taking the original definition found in biblatex.def:
\DeclareFieldFormat{sentencecase}{\MakeSentenceCase{#1}}
\renewbibmacro*{title}{%
\ifthenelse{\iffieldundef{title}\AND\iffieldundef{subtitle}}
{}
{\ifthenelse{\ifentrytype{article}\OR\ifentrytype{inbook}%
\OR\ifentrytype{incollection}\OR\ifentrytype{inproceedings}%
\OR\ifentrytype{inreference}}
{\printtext[title]{%
\printfield[sentencecase]{title}%
\setunit{\subtitlepunct}%
\printfield[sentencecase]{subtitle}}}%
{\printtext[title]{%
\printfield[titlecase]{title}%
\setunit{\subtitlepunct}%
\printfield[titlecase]{subtitle}}}%
\newunit}%
\printfield{titleaddon}}
Alternatively we can identify book-like entries directly and apply sentence casing to everything else. This is trickier because many more types qualify as book-like references and titles for these sources are printed by more than just one macro. In biblatex.def these include: title, booktitle, maintitle, journal, periodical and issue. To avoid redefining all of these, you can redefine the titlecase format instead.
\DeclareFieldFormat{titlecase}{\MakeTitleCase{#1}}
\newrobustcmd{\MakeTitleCase}[1]{%
\ifthenelse{\ifcurrentfield{booktitle}\OR\ifcurrentfield{booksubtitle}%
\OR\ifcurrentfield{maintitle}\OR\ifcurrentfield{mainsubtitle}%
\OR\ifcurrentfield{journaltitle}\OR\ifcurrentfield{journalsubtitle}%
\OR\ifcurrentfield{issuetitle}\OR\ifcurrentfield{issuesubtitle}%
\OR\ifentrytype{book}\OR\ifentrytype{mvbook}\OR\ifentrytype{bookinbook}%
\OR\ifentrytype{booklet}\OR\ifentrytype{suppbook}%
\OR\ifentrytype{collection}\OR\ifentrytype{mvcollection}%
\OR\ifentrytype{suppcollection}\OR\ifentrytype{manual}%
\OR\ifentrytype{periodical}\OR\ifentrytype{suppperiodical}%
\OR\ifentrytype{proceedings}\OR\ifentrytype{mvproceedings}%
\OR\ifentrytype{reference}\OR\ifentrytype{mvreference}%
\OR\ifentrytype{report}\OR\ifentrytype{thesis}}
{#1}
{\MakeSentenceCase{#1}}}
edit by @moewe: Note that the biblatex documentation recommends to use the starred form \MakeSentenceCase* instead of \MakeSentenceCase. The starred macro considers the language of the entry (as given in the langid field, or failing that assuming the current language) and only applies sentence case where it is appropriate (by default only for English-language publications).
booktitlefield doesn't apply to thearticleentry type. So your question had me thinking in terms of casing different types, not different titles within the same entry. I should have examined your example more closely. – Audrey Jul 13 '11 at 17:13\end{document}line on the pdflatex run after biber had been run. – Chris H Jan 29 '14 at 14:01