human biology - What evidence gives clues to the physiological basis for conversion disorder?

Conversion disorder has a set of DSM diagnosis criteria, which, among other things, includes ruling out all neurological disease.

However, as the media has shown us (and one could argue a biased portrayal), many of these young people in Le Roy, NY who were diagnosed with conversion disorder have exhibited tics and starts that are highly reminiscent of Tourette's Syndrome, which is thought to have some basis in pathology of the basal ganglia (and perhaps the thalamus and frontal cortex).

Granted, the issue is being looked into as having an environmental cause, so I can understand how the diagnosis may be reshaped, but I'm more curious about the initial diagnosis of "mass hysteria".

If this syndrome causes real physical symptoms and yet is "psychogenic", through what physiological means is the disease acting? Why would ruling out a neurological basis be a valid criterion?