Good luck finding something that will let you hike and stay dry - I have yet to find such a thing. smile

Having said that, there are some products that do better than others. Your first decision might be: poncho or waterproof/breathable rainsuit? There are a fair number of arguments in favor of ponchos, better ventilation being a significant one. I've used ponchos successfully ("success" being a relative term, with the meaning that "no worse than a rain suit.") They do allow a lot of air circulation, and they do keep the back of your pack dry - but they also snag on bushes and blow around if exposed to wind. The solution for those problems is to tie a cord around your waist; unfortunately, you've just eliminated about 2/3 of the ventilation. Ponchos are a viable option, but I've never found that they kept me any drier than rain jacket and pants.

My favorite w/b rain suit is the Patagonia Rain Shadow. I seem to have a bit less wetness from sweat when I use it, and the hood adjusts well for me. It doesn't let water in. However, we're again talking in relative terms: it works better for me than any other suit that I've tried, but I still end up with damp clothes. I can't prove it, but I've always felt that one weak point when walking in an all-day rain is where the hood meets your face, and your wrists meet your cuffs. You'll never obtain a perfect, waterproof seal at those places, so there will always be a little water that sneaks in if it's wet enough for long enough, and it will eventually get soaked up by your clothing. (It doesn't seem like any should sneak in at the wrists, until you remember that if you're using hiking poles, your wrists and forearms are horizontal, not vertical, surfaces and the rain runs along, not down, them.)

My second line of defense is synthetic clothing and, if the forecast is for significant rain, spare clothing. I tend to hike in shorts like the Patagonia Baggies, nylon shorts with a built-in mesh liner, like a swimsuit. I also wear synthetic T-shirts in the summer, like Capilene 1 or Runshade. (If you're noticing a bias toward Patagonia, it's not because I'm a brand-snob - it's that their stuff fits me well, every time. There are plenty of other equally high quality products out there, they just don't fit me quite as well.) The synthetic T-shirts also dry quickly in warm weather, once you're out of the rain. Body heat, inside a tent, will usually dry them in an hour or so - but it will increase the humidity in the tent, which eventually leads to condensation on the walls. (Where the rain gods open a window, they slam a door!)

In cooler weather, I change out the Capilene/Runshade for Wool 2 T-shirts, which are a wool/synthetic blend; they're a bit warmer, even when damp, and still dry out reasonably quickly.

If I know there will be a good chance of heavy or prolonged rain, I'll carry a second T-shirt and second pair of shorts, and save them for in-camp wear; I change into them after I have the tent pitched and the water collected, and I'm ready to move into the tent for the night. The next morning, I'm back in the damp clothing for hiking, with the dry stuff tucked safely away in ziplock bags. In spring or fall, the T-shirt and shorts may morph into Wool 2 longjohn bottoms and long-sleeved top - still saved for camp. A second pair of shorts is optional, but I usually take one just to avoid seat abrasion on the more delicate Wool 2 material.

This year, I'm going to experiment with using Borderless shorts (which don't have a liner) and Capilene 1 boxer shorts; when it's going to rain, I'll probably carry a spare pair of boxers for camp.

As far as brands, in addition to Patagonia, I have friends who swear by Smartwool and Icebreaker for their wool T-shirts (in the lightest weight they can get) and their light or midweight longjohn tops and bottoms. I also know people who have had very good luck with OR's brand of synthetic T-shirts and nylon shorts. For raingear, I've heard mixed reviews (though mostly good) about Marmot Precip.

GoreTex is the classic name, and I owned a GoreTex rainsuit way back when. It worked to keep water out, and I suppose it breathed. However, it was a heavy 3-layer fabric, so its mere weight generated a lot of sweat for me. So, all in all, I didn't stay any drier in it than I had in the old non-breathable coated-nylon rainsuits we had before GoreTex.

All in all, the Patagonia is the best I've ever used, but it's still a comfortable half-hitch short of the bar you're setting. Such, I'm afraid, is the state of the art so far.