The problem was, Outsulation worked too well, it was too airtight but if one tiny pinhole leak or crack allowed water to get in behind the insulation boards then mold would start to grow and eventually work its way through the drywall to the interior of the house. Or thats the excuse they used as Oregon is a wood products producing state and the Dryvit products caused a drop in the sale of wood siding during this "recession". So now they may go to 2x8 studs to allow for more board feet of wood to be sold and thicker fiberglass insulation in the walls. They have also ammended the building code so as to make it mandatory to install a vent in the bottom of the walls between each stud to let in air circulation . I don't know how this will keep cold air from entering the wall cavity and diminishing the R-value of the insulation. I would imagine this will be the law for a couple of years until they realize it is a bad design and then change the code back to the way it was. I have seen mold problems in houses with Hardy cement board siding, especially on the north wall of the house where the sun never shines during the winter so its not just Dryvit houses where this mold is happening. Hardy board is required in certain cities for the fire code. One way to eliminate mold is to heat with wood which produces dry heat and prevents mold from developing.

I thought the mold was dependent upon a certain type of exterior board used under the dryvit??? And if you used the proper type...mold was not an issue.

The state of Oregon has changed its building code and outlawed the application of Dryvit insulation and finishing systems on all human habitation structures. The reason for this change is the fact that any wood framed house with insulation applied to its exterior causes condensation to develope inside the house which in turn spawns molds that are harmful to human health. So now the only place you can use Dryvit, Stowe, or any of the other exterior insulating - finishing systems is on the entrance to a commercial store like a Home Depot or Bed and Bath store. There have been many single family houses built during the last 30 years with the Dryvit insulating system which was popular because it saved energy and kept the fuel bills low and conserved wood siding products, but now the building code will revert back to the old ways of constructing wood framed houses with fiberglass insulation in between the studs.