Although NASA's space shuttle is expensive, it is currently one of the best options for the launch of larger payloads and manned missions. In addition, the shuttle will be an important tool for building the International Space Station.
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The shuttle is the first manned spacecraft to be designed as mostly reusable.
At launch, there is an external liquid fuel tank containing liquid hydrogen and liquid oxygen, and there are two strap on solid propellant boosters attached to the orbiter.
While the shuttle's life support system is still open ended (must be resupplied from earth periodically), it is a great improvement over earlier systems.
Link to NASA's Shuttle Web Site