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Cooking wine to me is what I'm drinking when I'm cooking.

But sometimes I actually put it in the food...
I keep a bottle of EJ brandy handy for deglazing and making a quick cream sauce.

What type of wine do you use for making something like a wine reduction sauce?

It depends on the meal. But in general, I think cheap white and I mean Vendage white makes a great cooking wine. I do think when cooking with red, a better quality wine helps the dish. But I fell in love with a chick I met on an Internet message board, so what the hell do I know?

walmart's $3 bottles of wine work just fine. believe it's oak leaf. they have shiraz, merlot, cab, chard, pinot grigio, chard/pinot grigio blend. ok, I know too much about this wine. it also comes in a box for $10.
fyi, the merlot works for sangria. cheers!