I want information about the kind of websites most people spend their
time online. If its email, news, searching, watching media
content(youtube), social networking(myspace)....

If you could also break it down by popularity and percentage that
would be great. thanks.

http://alexa.com/

Online games : barafranca.com

Emails : Hotmail.com

Search : Google.com or yahoo.com

Mp3 songs : mp3mash.com

scam money making sites : coast-mail.com

As the first comment notes, the most appropriate answer to this
question is the list on http://alexa.com .

There's a list of most popular sites there on: http://www.alexa.com/site/ds/top_500

The way this list is compiled is by keeping records of the browsing
habits of people who have the Alexa toolbar installed. As you might
imagine, some people might view this record keeping as a privacy risk.
Also this toolbar only works with Internet Explorer.

This means that, when using this list, you should keep in mind that
the rankings are skewed towards people using Internet Explorer, and
people who install this toolbar.

If you keep that in mind, the list is reasonable. If you want better
statistics, I think you would have to ask a company to do interviews.

Here they are:

TOP 10 2006 Ranking : http://blogs.zdnet.com/ITFacts/?p=10630

Top sites based on categories: http://www.100hotsites.com/

Top 50 Sites: http://www.alexa.com/site/ds/top_sites?ts_mode=global&lang=none