Exterior Insulated Foam Siding a Good Idea?

A friend is trying to interest my husband in a new process of building homes out of foam boards coated with thin layers of concrete.  Do you have any information and comments on this type of construction?
joyceonwardh 9-8-07 5:19pm

It sound's like you are talking about Exterior Insulated Finish System (EIFS). This type of siding system became popular in the 1980's when high energy prices made insulated siding a wise choice. When done well, EIFS is beautiful, like real masonry stucco. However, the system has been plagued in the residential market by reports of leakage and the resulting lawsuits. While manufacturers have been working diligently to resolve the problems and the EIFS systems have changed over the years to include ways for it to drain moisture that gets past the surface, I am still very reluctant to recommend it.