microphones

[Classitar]

I think the best mics are still diaphragm or ribbon
Not sure how digital mics work

[pied_piper]

There are many types of microphones. I think this provides a good explanation:

http://en.wikipedia.org/wiki/Microphone

Be sure though that you don't confuse the type of microphone element with the type of microphone output. You asked about microphone elements which are largely what is described in the Wikipedia article. This descibes the difference between diaphragm, ribbon, condensor, electret, etc.

I think when you refer to a digital microphone, you are describing the output rather than the type of element. The output of a microphone is natively an analog electrical signal. This is plugged into an analog input like an amplifier, recorder, or a computer sound card. Analog output mics typically use audio connectors like an 1/8" or 1/4" "phone" plug or an XLR connector. Digital output would use a USB or perhaps an optical connector. A microphone with a USB connector for your computer uses digital output and the computer can convert it back to an analog signal if needed.