The past simple is used to talk about things that happened in the past, are finished and have no connexion with the present. We usually know when the action happened. For the example below, answer the following questions:
I saw a good film last night.
The past continuous is used to talk about an action that was in progress at a past point in time. For the example below, answer the following questions:
I was watching TV at 8 o’clock last night.
The past continuous can be used to talk about an activity that was in progress and interrupted by a single complete action in the past; it is made with the past continuous, the past simple and the words, when or while. For the example below, answer the following questions:
I was watching TV, when the phone rang.
Verbs such as BELIEVE, OWN BELONG, LIKE, UNDERSTAND, KNOW, HEAR are not usually used in the continuous form because they describe states, not actions.