I use a Carradice Pro-route Rain Cape.
http://www.carradice.co.uk/index.php...&product_id=66
It's been a mixed bag. The tape on the taped seams started to let go almost immediately. I ended up cutting off some of the tape as it got in the way, but just yesterday I noticed that more seams are coming untaped, and the tape will need to be removed. It was my intention to apply seam sealer to make up for the lack of tape, but I can't remember if I have done that or not yet.
What I know I did was apply a third party water proofing agent. After feeling water running right down my back through the cape in a good downpour, I realized that whatever waterproofing the cape started with, it had lost. I sprayed it down, and it works much better now.
Also it doesn't keep your feet dry. I usually bike in sandals. If the weather is cold enough, I have a pair of waterproof socks that I add to the mix and/or a pair of boots. Pretty effective so far, but not if the rain is coming at you sideways.
I like the cape idea. I like my cape's design. But my particular cape has badly-taped seams and lost its waterproofing. But it still works, and it's still my primary commuting rain protection.