every (good) html document has a DOCTYPE definition. This definition give the browser some hints as to how it should interpret and display the content.
a document can be either html or xhtml. An html document is more "forgiving" in terms of syntax. Uppercase tag names, unclosed tags, all are ok. Browsers take great liberties when interpreting html doctypes, making it possible for them to display even poorly-crafted html exactly the way the coder intended. By way of example, in html, <BR> is a perfectly acceptable way to define a hard break in html.
xhtml documents adhere to xml standards, and so come with a few requirements: for example, lowercase tag names and fully-closed tags are required. The way you specify <BR> in xhtml is <br />
It's fairly easy (if not sometimes tedious) to convert html to xhtml, and it's well worth doing. The main benefit of using xhtml is that it is more consistently parsed across different browsers and different platforms. This makes it easier to develop pages that will display well in any browser on any OS on any platform (mind you, this isn't always the case in practice, but it's far better with xhtml than html).
As an adjunct to the x/html specification you must specify a "strictness" as to how the data is to be interpreted. The three levels for this are "transitional," "strict," and "frameset".
"Frameset" means your page uses frames. "Strict" means that your page adheres to the strict definition of the x/html version you are using. Strict is often overkill and impractical. For example, you cannot use _target or iframes in strict (the w3c recommends using Javascript). Some over-the-top purists insist on always using xhtml 1.0 strict because it seems "cooler" to do this, but in truth I use it when possible, and don't try to turn my site on its ear just to get rid of the odd iframe or _target.
The compromise to "strict" is "transitional", which allows a slightly more lax mix of code and presentation, including _target and iframes.
When in doubt, go for xhtml 1.0 transitional, but regardless of doctype, it's far more important to have your page pass the validation suite at the w3c to show that it contains well-formed, error-free syntax.
And your page passes.