EJ,
It's really hard to explain how Paramo works to someone who has never used the clothing. When I bought my first Paramo jacket sight unseen from here in Japan, I really had my doubts about the claims that a lot of people made. Paramo themselves have the hardest time convincing people about how well the system works. You have to put aside your traditional notions of what "waterproof" means and try to intuitively see the way water works through the system. As Tom Van Wauwe explained, the materials are not truly wtareproof. In fact if you sit down in a puddle while wearing the pants water will squeeze through. However, within minutes after standing up your skin inside the pants will be dry again. If you splash some water on the inner liner you can watch as the water is actively "pulled" through the liner fabric toward the outside, where the shell absorbs it and disperses it, much like Pertex Quantum. It is the liner that is important, not so much the shell. (the shell acts to disperse the moisture so that it evaporates more easily and to block the wind, not to keep the garment waterproof) . The Paramo system works to keep you dry by continuously drawing moisture away from your skin, even in very heavy rain. When you pull a Paramo hood over your wet hair, the liner will actually draw moisture away from your hair until it is dry. So you can see the whole system is the reverse of what people traditionally conceive of as "waterproof".
And it works. The fabrics are completely breathable, not in the micro-pourous way of Gore-tex, but like any woven fabric, so the system always breathes well. When you sweat the system draws that moisture away, too. The only trouble, like Tom said, is that the clothing is heavy and, for me in three season summer conditions, usually too warm (though when it gets that warm I simply let myself get completely wet. There is no danger of hypothermia. If the wind changes and I start to chill, I don my Cascada jacket and let it dry me). Still, the Cascada pants, in one garment, replace base-layer tights and regular pants and a rainshell, so in winter it is a very versatile system. And if Chris Townsend recommends them over and over again you can be sure that they really do work. After years of using Gore-tex, Sympatex, Triple Ceramic, H2No, Breeze Drytech, and even eVENT, I much prefer the comfort of the Paramo system (plus every woman I've met who has tried them love the softness of the fabric).
Reading and writing about it just doesn't quite do it…