I figured it out just a few moments ago! Apparently the latest WordPress update (3.5.1) disabled the feature. You need to install the free Jetpack plug-in to restore the Type selector.
I may be mistaken when I say “disable”. I forget whether Jetpack was previously part of, or was installed with previous versions of WordPress. At any rate, installing Jetpack fixed the glitch! You can download Jetpack here: http://wordpress.org/extend/plugins/jetpack/
Good luck!
Hey CCBB, have you figured out the cause of the “Type” option not showing up? I have the same exact problem and for for the life of me, I cannot seem to determined the cause.
Looking at your site, it appears that you found an answer to your problem. I too am looking to invoke Fancy Box as a hyperlink. How or where did you figure this out?