A little more about waterproofing - as you can see in the pictures, two of the pictures are a pond and an indoor swimming pool made out of papercrete - these were built about five years ago and have had no problems at all - regular swimming pool sealant was used and it can be used to paint exteriors of houses and barns as well. The biggest problem those of you in wet climates will have with papercrete is water wicking up from the ground - you'll need to pour perimeter concrete foundations and seal the top of the concrete with any kind of waterproof barrier to keep the wicking from happening.
The stucco you see on these structures is papercrete. Papercrete blocks were stacked and mortered with papercrete slurry then smeared with more papercrete - no metal mesh is needed, papercrete mixtures for stuccoing are a little different than the mix you'll make the blocks out of but not much.
Tensil and compression strength of papercrete depends primarily on how much portland cement you add - compression strength of papercrete is higher than concrete, tensil strength is lower. The higher the amount of portland you use the stronger it will be. Mixtures with as little as 1 bag of portland per 200 gallons of mix - water slurry will hold together very well.
Different people have experimented with different mixtures - Clyde Curry in Marathon Texas adds styrofoam beads to ad more insulation and uses very high concentrations of portland cement for strength. The more portland you add, the stronger it is but also the less insulation it provides - a good mix will have about R-2 per inch.