[n]IN = InN = Nand
[n]IN : TThe latter is because [n]: (T->T)->(T->T), hence [n] I: (T->T), and therefore ([n]I)N : T.
Note: this part is exactly what does not hold in the system of Curry: x is not obliged to have a specific type T and therefore we can assume different types for x, thus obtaining different types for \x.N.
\x1x2...xn. x N1N2...NkHowever, since we have only one -> in the type, n must be 1, and x must be x1 because it can't be free. Moreover, k must be 0 because if we apply x1 to any term then the type of x1 cannot be simply alpha. In conclusion, the term must be \x1. x1, which is I.
   (\x. case(x,\x.Omega,I))(inl [false]) -> (\x. case(x,\x.Omega,I))(inl [false]) -> ...
                  -----                                    -----
   (\x. case(x,\x.Omega,I))(inl [false]) -> case(inl [false],\x.Omega,I) -> case(inl [false],\x.Omega,I) -> ...
   -------------------------------------                        -----                           -----
   (\x. case(x,\x.Omega,I))(inl [false]) -> case(inl [false],\x.Omega,I) -> Omega -> Omega -> ...
   ------------------------------------     ----------------------------    -----    -----
   (\x. case(x,\x.Omega,Y)(inr [false]) -> (\x. case(x,\x.Omega,Y)(inr [false]) -> ...
                  -----                                   -----
and a normalizing reduction sequence
   (\x. case(x,\x.Omega,Y)(inr [false]) -> case(inr [false],\x.Omega,Y)
   ------------------------------------    ----------------------------           
                                        -> (\z.[false](zz))(\z.[false](zz))
                                              -----------
                                        -> (\zy.y)(\z.[false](zz))
                                           -----------------------
                                        -> \y.y (normal form)
                                             
Note: By mistake the original term in this 
question was  (\x. case(x,\x.Omega,Y)(inr [true]). This 
term is not normalizing.
           G |- M: A + B   G |- N: A -> C   G |- P: B -> C
   +elim ---------------------------------------------------  
                    G |- case(M, N, P) : C