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Fiberglass batts are generally used on new construction. This was a popular insulation in the past, because it is inexpensive.
Roxul has become an increasingly popular type of insulation to use. It is pre-cut to fit tightly into 16" or 2 foot on center cavity which makes it easier to install than other insulation. It is a little more expensive than fiberglass, but is more energy efficient because it restricts more air flow.
Cellulose insulation is the second best product in the industry. It is water resistant, fire retardant, mold resistant, deters rodents, and makes an excellent sound barrier. Cellulose is a mixture of cotton fiber, pre-consumer newspaper, and borate. It is dense packed at 3.5 lbs per cubic foot which makes it air tight.
Spray foam is the best insulation in the industry. It is structurally sound, there is a higher R Value per inch, and it is 100% air tight.
Vapor barriers are installed to prevent moisture in dirt basements, and crawlspaces. They help improve the air quality, and they keep your hot water tank, oil tank, and furnace from rotting due to excessive moisture exposure.