atozgr -- "isolated" and "insulated" mean about the same thing, don't they? And NEC uses them more-or-less interchangeably, see 250.146(D) and the FPN below it.
Chuk1t -- back to your original question -- my understanding is that IG helps about 50% of the time, and hurts about 50% of the time. That's why higher-end audio equipment will often have a ground isolation switch built into it, you set the switch to whatever position gives you less noise.
Also, keep in mind that most such equipment is connected to lots of other grounded equipment via grounded communications cables, which effectively introduce lots of ground loops anyway. Even if you're very careful about isolation transformers, opto-isolators, etc., you're almost guaranteed to inadvertently start introducing some ground loops if you have more than 2 or 3 pieces of equipment.
Give the extra cost, the 50/50 effectiveness rate, and the high chance of screwing up a true IG installation, I generally recommend against IG.
At the same time, if a client wants is, I don't argue with them. I'll give them the above explanation and a chance to back out exactly one time, if they still want the IG after that, well, it's their money! (Many of them like IG simply because it helps ensure that everybody plugs their computer into the right outlet at their desk, the orange one -- that's the single overriding good reason I've heard of for IG outlets!)
By the way, keep in mind that the point of IG is to reduce ground voltages, which it does by breaking all ground loops and stopping all ground current flows (during normal operation). The OTHER way to reduce ground voltages is to reduce ground resistance: V=IR, so reducing either I or R will reduce ground voltage.
The way to reduce ground resistance is to use BIG FAT ground cables, and to keep them SHORT.
The nice thing about the BIG FAT SHORT ground cable concept is that it's really hard to screw up, practically foolproof. Any idiot can understand BIG FAT SHORT. The downside is that BIG FAT copper cables are EXPENSIVE (lucky that short ones are cheaper!). BIG FAT SHORT (my name, not an industry standard) is typically what you will find where ultra-low ground voltages are really really important. IG, maybe. BIG FAT SHORT, always.