What you have is one of the types of BX cable. As others have said, this can come in either a steel jacketed configuration or aluminum jacketed configuration. The grading will depend on your yard and the prices vary considerably. For Steel BX, I have one yard that makes you thow it in with light iron / shred at less than 6 cents right know. I have another speciality yard that pays 29 cents for it.
One thing that I've noticed nobody has mentioned, and this should answer your question on the 3rd wire, is that there are 2 different types of steel and aluminum BX. These types are AC ans MC. AC has the thin wire that you are talking about and it is bonded to the metal jacket which then acts as a ground. The MC wire has a seperate insulated copper ground wire. Here is a link to another forum with a discussion on these wire types. Please note that the electric code (NEC) that they are refering to is from 2002 or before, so don't assume that the allowable uses are still the same.
http://www.mikeholt.com/forum/Forum1/HTML/002081.html
One more link to clarify my last post a little more:
http://www.afcweb.com/media/afc-1001...stallation.pdf
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