Well that is an interesting facet about this general subject. Really the treated surface is very similar to using a tight clay layer there. We are adding roughly 10 to 15 percent clay to what ever soil is there. Water from below will move via capillary action, but slowly, especially to plant roots. However, the low permeability keeps most of the surface water out during those times when water in on the ground surface. Speaking from my experiences, I have treated two of my houses that way. Also I'd estimate the number of such treatments, including one earth enclosed type school, at a dozen or thereabouts. Never has there been a complaint to me. However, one home owner decided that if a little is good, more is better. The excess bentonite attracted much water and then sod actually slid down a slope in front of the house (the greasy mess mentioned). Bentonite is a mineral made up of sheets, similar to mica. The attraction of water to those intersheet spaces, will cause bentonite to swell 16 times its original volume, given the water available and no loading on the clay. It is that tendency that cause it to fill the voids. The use of landscaping plastic sheets under bark and wood chips may be what you heard. I know you will find water droplets on the underside of plastic laid on the ground due probably to the vapor pressure effects. In the jobs I am familiar with the culprit was surface water entering, not ground water. At my current house it is that use also, but the ground water table is only a foot or so below basement. The only problem event requiring the treatment was from heavy rains. With the treatment, the sump pump does not run now at those rainfall times. No excess moisture noted inside in the four years I have been here. I can only say all the jobs, except the "grease", have worked. Just before I moved here I "supervised" a job of volunteers for a country church on a ridge. Later they installed an elevator by excavating from the outside. Wouldn't you know it, they destroyed that "seal" there and in came the rainwater in that area later. A comment about dumb landscaping. Many 10 -15 yer old houses here (including mine before I fixed it) have a 6 inch deep trench of about 2 ft. width around the house walls filled with clear pebbles. That is to keep weeds from growing there. They are laid on a "landscaping fabric". I know that was part of my problem of sump pump running a lot. However, the poor gal across the street has lived in her house 10 years and in almost every rain that trench fed water to two window wells. The sump pump ran, but no help for those windows. I put her and her daughter to work mixing sand with bentonite, a 1 to 5 mix and that was packed in the trench at and on either side of the windows. Needless to say now no window troubles, but the sump pump seems to handle the water that otherwise came from the trench and bckfill. At my house no trench now but one inch of pebbles on treated soil.