set theory

Hi,

I'm new to this forum but would like to ask a basic question
i.e. given that Set Theory is said to be an example of a
Boolean algebra,then how is it Boolean??
In the normal Boolean algebra we only have two possible
values of a variable these being 0 and 1 but I can't see
how this two valued concepts apply to sets.

This probably isn't the place for this level of question. But, as a guess at an answer to you question, a given item either is or is not a member of a given set. That's a binary state. It isn't like fuzzy logic where an item can be somewhat or partially a member of a set.