string is an alias in C# for System.String.
So technically, there is no difference. It's like int vs. System.Int32.

As far as guidelines, it's generally recommended to use string any time you're referring to an object.

e.g.

string place = "world";

Likewise, I think it's generally recommended to use String if you need to refer specifically to the class.

e.g.

string greet = String.Format("Hello {0}!", place);

This is the style that Microsoft tends to use in their examples.

It appears that the guidance in this area may have changed, as StyleCop now enforces the use of the C# specific aliases.

Setting a bit

Use the bitwise OR operator (|) to set a bit.

number |= 1UL << n;

That will set the nth bit of number. n should be zero, if you want to set the 1st bit and so on upto n-1, if you want to set the nth bit.

Use 1ULL if number is wider than unsigned long; promotion of 1UL << n doesn't happen until after evaluating 1UL << n where it's undefined behaviour to shift by more than the width of a long. The same applies to all the rest of the examples.

Clearing a bit

Use the bitwise AND operator (&) to clear a bit.

number &= ~(1UL << n);

That will clear the nth bit of number. You must invert the bit string with the bitwise NOT operator (~), then AND it.

Toggling a bit

The XOR operator (^) can be used to toggle a bit.

number ^= 1UL << n;

That will toggle the nth bit of number.

Checking a bit

You didn't ask for this, but I might as well add it.

To check a bit, shift the number n to the right, then bitwise AND it:

bit = (number >> n) & 1U;

That will put the value of the nth bit of number into the variable bit.

Changing the nth bit to x

Setting the nth bit to either 1 or 0 can be achieved with the following on a 2's complement C++ implementation:

number ^= (-x ^ number) & (1UL << n);

Bit n will be set if x is 1, and cleared if x is 0. If x has some other value, you get garbage. x = !!x will booleanize it to 0 or 1.

To make this independent of 2's complement negation behaviour (where -1 has all bits set, unlike on a 1's complement or sign/magnitude C++ implementation), use unsigned negation.

number ^= (-(unsigned long)x ^ number) & (1UL << n);

or

unsigned long newbit = !!x;    // Also booleanize to force 0 or 1
number ^= (-newbit ^ number) & (1UL << n);

It's generally a good idea to use unsigned types for portable bit manipulation.

or

number = (number & ~(1UL << n)) | (x << n);

(number & ~(1UL << n)) will clear the nth bit and (x << n) will set the nth bit to x.

It's also generally a good idea to not to copy/paste code in general and so many people use preprocessor macros (like the community wiki answer further down) or some sort of encapsulation.