Thanks Julian, that's all correct.
just to add to what Julian explained, there is no backpropagation involved here as the weights of the connections between neurons are fixed at birth and remain constant during the life of every organism.
the two main differences from a vanilla MLP is that the brains allow for recurrent connections (that is, loops) and that all neurons have some damping that smooths the changes in their activations. I can't remember exactly why I introduced this additional piece, but I think it was because I didn't like brains that were changing too quickly, as if having seizures. The damping on the changes in their values attenuates these effects, and is accomplished partly through the use of the "target" variable.
-Andrej