11:53 a.m. on July 31, 2006 (EDT)
It is hard to answer your question without some details of the materials of which the tent is made. For example, old-school canvas tents (cotton or cotton blends) are actually quite waterproof because the fibers absorb water and expand, sealing the tent quite well. There are products specifically made to aid in the process, referred to as waterproofing for canvas tents. Seam sealing does no good on these, since the expansion of the stitching when wet does all the seam sealing you would want. But there are some problems - the tents develop a smell after a while, especially when treated with the waterproofing chemicals, they weigh a lot, and they will mildew unless well cared for.
Nylon and polyester tents are made either as single wall or a main tent plus fly. If single wall, the tent body is a "waterproof breathable" material that is a laminate similar to Goretex. That is, a nylon or polyester main cloth to which is laminated a PTFE (like teflon) or other plastic (often polyurethane) that is microporous. Some of the materials, like Toddtex (Bibler) or Tegraltex (Integral Designs), also have a fuzzy wicking layer on the inside that helps wick the moisture through the microporous layer. These require seam sealing. Many are taped, but a good seam seal as a supplement is insurance, especially after years of hard use.
The tents with flies have a very breathable main tent body with a fly that is nylon or polyester that has a flash coating of a plastic, usually polyurethane. The seams on the fly may or may not be taped, but again seam sealing is needed.
Some tents (mostly tarp tents, like Black Diamond's Megamid), usually ones without a floor, are more like a rain fly in that they are a coated material that is not breathable. These, like a fly, need seam sealing, especially after much use (periodic resealing, too). There are some floored tents that are completely waterproof, but they obviously need a lot of ventilation (otherwise you can't breathe for very long).
In most tents with floors, the floor is a heavier material that is flash coated. Some floors are of a "bathtub" design that has no or only one seam on the floor, with the floor being folded up along the tent walls. The seams on the floor and where it joins the tent wall must be seam sealed, even if taped, again as in all cases of sealing, re-sealed periodically.
Condensation - in certain conditions, I have never had any condensation. Specifically, in my desert camping and at altitude in dry climates (summer in the Sierra, Rockies, etc). In other conditions, I have gotten condensation in every tent I have ever had or used, single or double wall, no matter the material (including the military canvas tents we had at the National Jamboree each time I have been on staff). The condensation can be kept to a minimum by ventilation and air flow. But if the temperature and humidity conditions are right (or wrong, depending on your viewpoint), you are almost guaranteed of condensation (in my house in Mississippi, we got condensation on the walls in summer unless we ran the air conditioner/dehumidifier full time! Same in the basement of our house in Boston.). Winter camping often involves condensation (which can be frost on the tent walls). Yes, there are ways to minimize it, but you will find the perfect conditions for it sooner or later if you camp in enough different seasons and locations. Obviously, the best prevention is to just not camp in those conditions - for example, avoid rain forests and late spring blizzards where the temperature is right at the freezing point.