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Codex: Blood Angels states Mephiston has three psychic powers and may use three per turn.
The FAQ states "A Blood Angels Librarian (including Mephiston) may use the psychic disciplines found in the Warhammer 40,000 rulebook, instead of those in Codex: Blood Angels. If he does so, generate two new powers from the Biomancy, Divination, Telepathy or Telekinesis disciplines (in any combination) before armies are deployed."

Does this mean that if Mephiston chooses to take powers from the book he:
a) Replaces two of his three powers with whatever he rolls for in his allowed trees and keeps the third from Codex: Blood Angels.
b) Loses all three of his powers and receives only two from the book.

To answer your question, I'll say B.

If it counts, my group's personal interpretation is that they meant for M.C. Fistin' to roll 3 times on the Disciplines, but bumbled the FAQ.

Thanks to their awesome FAQ, it looks like we have a ML: 3 psyker with only 2 powers if you use the 40k book.

b is correct. If he chooses to swap out his codex powers for rulebook ones, he loses three and only gets two back.

It's very clearly B, my guess is they didn't want Mephiston to be able to use a combination like Iron Arm, Warp Speed and Endurance/Enfeeble all on the same turn.

Does Mephy have a Force weapon? If so, 3WC is still useful, even if he knows only two powers.
Thawn, a GK character, is PML2 and knows only one power. He has a force weapon, so it's still useful.

Alright, looks like its a pretty clear consensus here. Thanks, guys!

Yep, definitely B. That one FAQ is his only permission to take Rulebook powers at all. The more pressing question here is, why would you?! He loses a lot of his utility without his default powers, if you're really after Rulebook powers, take a normal Libby instead for much cheaper.

 Elric Greywolf wrote:
Does Mephy have a Force weapon? If so, 3WC is still useful, even if he knows only two powers.
Thawn, a GK character, is PML2 and knows only one power. He has a force weapon, so it's still useful.

Dont forget powers like Invisibility are 2 warp charges, so Meph can still use 3 warp charges on 2 powers without his force weapon).