Join Date: Jan 2007
Location: Home of the Hawkeyes
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wire type 1 is your good old fashioned "zip cord"or "lamp cord" type speaker wire. The clear jacket is not rated for installation inside walls and ceilings. wire pairs lay parallel to each other, which is a less desirable geometry.
wire type 2 has insulators rated CL2 which relates to its flammability and types of toxins released. This type of wire is appropriate for installation inside walls and ceilings, but not air handling spaces. The insulation has two layers, one bonded to each conductor and an outer jacket enclosing the pair. these types of wire often have a small amount of twist between the pair which may aid in noise rejection.
By "shielding" I hope you meant the layers of insulation around the wire? Speaker wire is rarely "shielded" in the manner that line or microphone level audio cables or video cables are constructed.
If the wire is going to be visible, then the cosmetics of the outer jacket may have some value, but if you use a good quality wire of the correct gauge, most people of integrity will have a hard time telling an appreciable difference between the brands.