This paper extends the concepts that were developed to explain the structural rearrangement of the wurtzite AlN lattice due to incorporation of small amounts of oxygen, and to directly use them to assist in understanding the polytypoid structures. Conventional and high-resolution transmission electron microscopy, specific electron diffraction experiments, and atomistic computer simulations have been used to investigate the structural nature of the polytypoids. The experimental observations provide compelling evidence that polytypoid structures are not arrays of stacking faults, but are rather arrays of inversion domain boundaries (IDB's). A new model for the polytypoid structure is proposed with the basic repeat structural unit consisting of a planar IDB-P and a corrugated IDB. This model shares common structural elements with the model proposed by Thompson, even though in his model the polytypoids were described as consisting of stacking faults. Small additions (≃ 1000 ppm) of silicon were observed to have a dramatic effect on the polytypoid structure. First, it appears that the addition of Si causes the creation of a new variant of the planar IDB (termed IDB-P'), different from the IDB-P defect observed in the AlN-Al2O3 polytypoids; second, the addition of Si influences the structure of the corrugated IDB, such that it appears to become planar.