Democracy vs. Republic

"I pledge allegiance to the flag of the United States of America,
and to the Republic for which it stands,
one Nation under God, indivisible, with liberty and justice for all."

I thought we lived in a democracy, too. I'm starting to do some research into the difference between a democracy like we're taught to think of ourselves as, and a republic which is the true intention of our founding.
Please post up your thoughts if you know more than me (not hard to do) about this, or what you find interesting about the conept. To get you started, here are the breif definitions from military training manuals. The following comes from Training Manual No. 2000-25 published by the War Department, November 30, 1928.
DEMOCRACY:

• A government of the masses.
• Authority derived through mass meeting or any other form of "direct" expression.
• Results in mobocracy.
• Attitude toward property is communistic--negating property rights.
• Attitude toward law is that the will of the majority shall regulate, whether is be based upon deliberation or governed by passion, prejudice, and impulse, without restraint or regard to consequences.
• Results in demogogism, license, agitation, discontent, anarchy.

REPUBLIC:

• Authority is derived through the election by the people of public officials best fitted to represent them.
• Attitude toward law is the administration of justice in accord with fixed principles and established evidence, with a strict regard to consequences.
• A greater number of citizens and extent of territory may be brought within its compass.
• Avoids the dangerous extreme of either tyranny or mobocracy.
• Results in statesmanship, liberty, reason, justice, contentment, and progress.
• Is the "standard form" of government throughout the world.

Old manuals, I know. These were ordered destroyed back in the Rosevelt Era, BTW.
More ramblings and whinning from me to come on this after I put forth my 8th grade reading skills to work. =)