Pat, Scott,
I think you got confused. First lets have a look what a "circuit" looks like:
Inside the panel, connections are made to the incoming wires. These connections are then used to supply power to selected portions of the home. There are three different combinations:
1) one hot, one neutral, and ground: 120V circuit.
2) two hots, no neutral, and ground: 240V circuit.
3) two hots, neutral, and ground: 240V circuit + neutral, and/or two 120V circuits with a common neutral.
(1) is used for most circuits supplying receptacles and lighting within your house. (3) is usually used for supplying power to major appliances such as stoves, and dryers - they often have need for both 240V and 120V, or for bringing several circuits from the panel box to a distribution point. (2) is usually for special 240V motor circuits, electric heaters, or air conditioners.
[Important Note: In the US, the NEC used to permit a circuit similar to (2) be used for stoves and dryers - namely, three conductor wiring, with a ground wire doing dual duty as a neutral. As of the 1996 revision to the NEC, this is NO LONGER PERMITTED.] Mike, this is actualy the awnser to your original question.
This is all for typical residential 2 phase service. If you look at industrial applications you see 3 phase 208V Y / 120V and 480V Y / 277 V systems or delta systems. This could fill another book of comments so I will stop here on 3 phase systems.
Regarding a word on voltage levels like: 110/115/117/120/125/220/240
One thing where things might get a bit confusing is the different numbers people bandy about for the voltage of a circuit. One person might talk about 110V, another 117V or another 120V. These are all, in fact, exactly the same thing... In North America the utility companies are required to supply a split-phase 240 volt (+-5%) feed to your house. This works out as two 120V +- 5% legs. Additionally, since there are resistive voltage drops in the house wiring, it's not unreasonable to find 120V has dropped to 110V or 240V has dropped to 220V by the time the power reaches a wall outlet. Especially at the end of an extension cord or long circuit run. For a number of reasons, some historical, some simple personal orneryness, different people choose to call them by slightly different numbers. This FAQ has chosen to be consistent with calling them "110V" and "220V", except when actually saying what the measured voltage will be. Confusing? A bit. Just ignore it. One thing that might make this a little more understandable is that the nameplates on equipment ofen show the lower (ie: 110V instead of 120V) value. What this implies is that the device is designed to operate properly when the voltage drops that low. 208V is *not* the same as 240V. 208V is the voltage between phases of a 3-phase "Y" circuit that is 120V from neutral to any hot. 480V is the voltage between phases of a 3-phase "Y" circuit that's 277V from hot to neutral. In keeping with 110V versus 120V strangeness, motors intended to run on 480V three phase are often labelled as 440V...