The first is the NPS cloudship used by Zoë Castillo, Brian Westhouse and Crow. Brian resignedly tells Zoë that this is an older model, though it is perfectly serviceable. This ship consists of a huge balloon, presumably filled with a lighter-than-air gas like helium, 1 mast and 8 sails on top for propulsion, a passenger pod on one side, and a rudder counterbalanced on the other for steering.
The second type is the cloudship used by Azadi soldiers - these are much bigger, and appear be faster and more maneuverable. They would seem to be troop carriers rather than battleships, as the invasion at the climax of Dreamfall is absent of the sounds of bombardment. They have 5 masts each with a sail, and larger passenger compartments. When airborne, they resemble large sailing ships. They seem to use another form of propulsion, such as a propeller (possibly driven by a steam engine). It does however seem unlikely that they are kept aloft through mechanical means alone, and magic is likely to play a part in their running.
A cloudship seems to require an experienced pilot, although while Brian Westhouse first tells Zoë that the ship is not as simple as it looks, once they are airborne he says that the ship largely flies itself.