Our state requires primary and secondary treatment for homes. Primary is typically anaerobic decomposition of scum and sludge in the septic tank. Pretty much like all areas described in this thread.
Secondary is aerobic and is done by aerating the septic tank effluent using one of several methods like aerators, sand filters, recirculating gravel filters, mounds, or drainfields. The secondary aeration is most cheaply done in my area through a drainfield (leechbed). The effluent dribles through the non-saturated ground and the air loving bugs eat it up. If your ground is saturated with liquid either from groundwater or backed up effluent then there is no oxygen to provide the secondary treatment and your system will not be providing secondary treatment. Almost all the problems come from the secondary treatment stage filaing since keeping it non-saturated depends on many variables like loading volume, loading strength, drainfield infiltration rate, drainfield aeration, etc that an uninformed homeowner can screw up.
Adding bacteria is not necessary. Doing so would demonstrate that you do not understand the prevelance of bacteria on everything you touch. Ubiquitous is the word.
The final step is disposal. After secondary treatment, it can be dumped on the ground in a ditch or whatever and shouldn't smell or be dangerous. There is the yuck factor and most people, and agencies, do not want to see finished discharge so some sort of underground disposal is almost always required.
The above described process is almost exactly how a large scale sewage treatment plant works too. Using aeration basins and sludge digesters. They often dump into a river.
It may be poop to you but it is my bread and butter. /forums/images/graemlins/grin.gif