I'm partial to dry laid, think it holds up better to time, and have seen, more than a few times, good stonework react violently to being needlessly pointed up with Portland. But if we're gonna throw lime into the mix...
Here's the first of a ten part primer from the Virginia Lime Works -
http://www.youtube.com/watch?v=7xBzrjKAsTs&feature=channelBut start with their vid on slaking -
http://www.youtube.com/watch?v=eSKX0gzESwI&feature=channel