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I've always known it as "Shi'a Islam." The "Shi'a" term is always used amongst Muslims when conversing in English. I'd agree that "Shiite" is bastardized version of the term... but I personally don't have a problem with it being used.
The term is derived from "Shi'at Ali" which means "the party of Ali."
There's certainly a preference when it comes to "Muslim" and "Moslem." IMHO, "Moslem" is just plain incorrect. The term is supposed to be pronounced "Mus-slim" (not "muz" though, I guess its halfway between a "Mus" and "Moos"), instead of "Mauz-lim."
The following is from Wikipedia: Until the late 1980s, the term Moslem was commonly used. Muslims do not recommend this spelling because it is often pronounced "mawzlem" /mɒzlɛm/ which sounds somewhat similar to an Arabic word for "oppressed" (Za'lem in Arabic). The word is pronounced /muslem/ in Arabic, but often /mʊślɪm/ in English. The word is now most commonly written "Muslim".
I've never heard about the "Za'lem" bit before but I'd recommend using "Muslim" as its probably as close as you can get to the actual sound of the word.
Then there's also the spelling of the "Qur'an" as opposed to the "Koran." I used to see it spelled with a "Q" a majority of the time until only the past few years. I think the "K" version is back in use thanks to the modern day Orientalist talking heads.
:)
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