Hi, Everyone
Definite newby here, and I'm happy to land among my fellow lovers of Bag End.

I hope you don't mind me jumping in to this thread; I was doing some searches for 'underground cob' as I'm mulling over possible designs for combining the $ 500 house with cob, and this thread showed up in the top ten. The whole site looks totally brilliant!
In England, where I learned to build with cob, green roofs are frequently put on cob buildings. The walls will support any amount of weight, and the maritime climate is perfect for growth. They use a lot of thatch, too, but the trend is toward living roofs for cob.
I've been thinking about your other question, about using cob walls in an underground house, and it seems to me that it would be feasible following the same technique as with wood. That is, having a layer of plastic or rubber on the outside of the wall, between the wall and the earth. That should keep the moisture from the cob in the same way it's kept from the wood.
With regard to the breathability of the cob, assuming it was allowed to dry before the plastic layer on the outside and the earth backfilling, I can't see why that would be a problem. It won't rot, because moisture will be kept away thanks to the plastic or rubber membrane, and it will breath on the inside side of the wall. At least, that's what I'm thinking right now; if anyone knows better, don't feel shy to say so.
A question for Allen Lumley, above: you say that the ideal underground structure has 20 feet of dry earth outside the walls. How do you get that much of a belt around the entire building to stay covered and dry?
Cheers