As many have said, it is quite true that a type set is defined only by the parameters the individual collector wishes to place on it. There is great variance in what determines a MAJOR type, a MINOR type and VARIETIES of types.
A MAJOR type is obviously one that has a unique principal obverse design. For example, there is only one major type of Washington quarter, irregardless of metal content (silver vs. clad), reverse design (eagle vs. statehoods), designer of the principal obverse design (Houdon vs. Cousins), date changes (1776-1976) or other such variations to the original principal design.
A MINOR type is one that would include, for example, in the Washington quarter series: silver, clad, silver-clad, Houdon portrait, Cousins portrait, bicentennial reverse, and all 56 different reverses of the Statehood series, which are in both clad and silver versions. This would be a total of 118 DIFFERENT MINOR TYPES in the Washinton quarter series. If however, one defines a metal content change as a variety and not a type, this would reduce the total to only 60.
Further, it is interesting to note, for example, that in the Lincoln cent series, many define these as different types: 1909 (VDB), wheat wreath reverse, 1943 (steel), Memorial reverse (bronze), Memorial reverse (copper-coated zinc), and of course, the new 2009 four different reverses. This is if we don't include the different metal content ("shell cases") of 1944-1946 issues. This totals 10 (TEN) Lincoln cent types! I should point out that the name of this coin type is "Lincoln cent" and there is only one of those types, irregardless of the metal content, reverse design, etc.
Nearly all other coins have similar major & minor type classifications which are given inconsistant treatments by album and holder makers. For example, mopst album makers define the 1909 VDB Lincoln cent as a distinct type but ignore the 1966-2003 Jefferson nickels, with added designers initials FS, which is identical.
A type set is "in the eye of the beholder" though, and it is to the pleasure of each collector to define the limits of their own type set. A collection of only major types wouyld probably be within the range of most collectors. My personal preference is to include one of each major and minor type, pretty well following the guidelines in "A Guide Book of United States Type Coins" by Q. David Bowers. Rather than limiting my collection to any particular preprinted album, I follow my own inclinations with a custom album, made from three Dansco "United States Type Coins" binders with twelve pocket vinyl pages for 2x2 which I can arrange with maximun flexibility. Incidently, I use self-adhesive 2x2 holders, which give a very clean and uncluttered appearance. Grades of coins in my collection range from good to proo the only criteria for me is that they be "pleasing" in appearance, which is my personal prefereance. I've noticed from other collectors postings that some seek BU and/or proof specimens only ("the very best"), and one collector sought only holed coins for their type set - and intriguing (and economical) idea!!
Type collecting has been an enjoyable hobby for me for over 40 years and surely for many more, considering upgrades, new issues, etc. Enjoy your type sets, collect what you want and just have fun with it!!
Some sources that may be helpful on the subject, whether major, major and minor, or including varieties, include the following:
(1) Bowers, Q. David, "A Guide Book of United States Type Coins" (Atlanta, GA: Whitman Publishing, 2nd Ed.).
(2) Radeker, William T., "Collecting Coins by Design" (Sidney, OH: Amos Press, 1978, First Ed.)
(3) Yeoman, R.S., "A Guide Book of United States Coins, 63rd Ed., 2010" (Atlanta, GA: Whitman Publishing, 2009).
I invite your further posts and participation in this fascinating subject!
Type Coin Collecting Comments 
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