Clay

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Description (From Recipaedia)

Clay is a heavy, densely packed soil made of very small grains. From time immemorial it was known that by firing it in a furnace one can obtain bricks, which are the most versatile building material. Clay is often found on the bottoms of shallow lakes. Can be painted.

Uses

Clay can be smelted to produce bricks.

It's very suitable for decorative purposes, especially (as of 2.0) because it allows for solid color when painted, unlike granite and other materials. It is also considered by some the best material to use when constructing furniture, because of its purity of color.

Notes

Beginning in V2.0 clay is now paintable.
Clay may also be found underground, and in caves. It is also very common at the bottom of the ocean and in ponds and lakes. Getting clay from the ocean however, can be hard because of predators and oxygen levels.
Projectiles will always stick into this block.