Most Articles will be assigned to a Section and Category. In many cases, you might not know where you want it to appear so put the Article in the Uncategorized Section/Category. The Articles marked as Uncategorized are handled as static content.

You indeed can change the Menu Item's Type to whatever you want, even after they have been created.

If, for instance, you want to change the Blog Section of a Menu link, go to the Control Panel->Menus Menu->[menuname]->Menu Item Manager and edit the Menu Item. Select the Change Type button and choose the new style of Menu Item Type from the available list. Thereafter, alter the Details and Parameters to reconfigure the display for the new selection as you require it.

In Joomla! versions prior to 1.5 there were separate processes for creating a Static Content Item and normal Content Items. The processes have been combined now and whilst both content types are still around they are renamed as Articles for Content Items and Uncategorized Articles for Static Content Items.

If you want to create a static item, create a new Article in the same way as for standard content and rather than relating this to a particular Section and Category just select Uncategorized as the option in the Section and Category drop down lists.