Not the best photo but the best I could come up with. This is in a 1981 S six piece proof set I picked up recently. Any thoughts would be greatly appreciated.
In my opinion it is a Type I. It doen't appear clear enough for a Type II. Info from http://www.raykomkacoins.com/81STy2Explained.php: (The Example here is from a JFK Half, but the same punch was used for all dies.) "The Type two is a clear wide "S" with a lot of room in the center. The beginning and end of the "S" looks like it has been flattened This is different from the 1979 type two where it is much easier to tell. The 1979 Type I is a blob while the Type II is a clear normal "S"." 1981 S Type I 1981 S Type II
The case is scratched up so much if I look at it from one angle it looks like a type I but from a different angle it looks like a type II. Fairly new to collecting so I don't have much experience determining varieties. I am just comparing it to examples I have found online. I hope it is a type II either way I picked it up for $7.00 at a flea market.
As I said, the bulbous serifs are the determining factor - http://www.smalldollars.com/dollar/page29.html
There are several anomylous '81 mint marks and these can be difficult to differentiate if not in hand. These just have a lot of different appearances. The type II mint mark looks like the top of the "S" was bent upward a little and then a glob put at the front to make it look more normal. Viewing it this way makes it much easier for me to differentiate them because none of the other "S" mint marks look like the top is bent higher. I think this one is the type I.
I see a Type I, sorry. I have seen some Type I on Susan B's that you could swear were a Type II, but once compared to a well struck Type II, you'll see that you were in error and that in reality, your eyes began to see a Type II that's not really there. Also, some Type II of 1981 resemble the Type I due to the amount of striking pressure used by the die sinker and also wear or polished dies. Lots of variables can be expected with series.