well theres plenty of folks here better qualified than me to explain it, but it's not hard stuff anyway, so I'll give it a go.
Basically there are 2 kinds of refractory cement.
ITC-100 or similar and Satanite or similar
http://refractory.elliscustomknifeworks.com/
ITC type coatings are to rigidize and "glue" the lining into the forge, you can also use it to patch or fill in low spots to get a nice round cavity inside the forge. It comes as a powder and is just mixed with water to a cement like consistency, then applied to the kaowool, I just used my gloved hands.
Satanite is another type of refractory coating that from my experience accomplishes about the same things as the ITC, plus is more flux resistant for forge welding(Damascus, etc), and has a more heat reflective property to it. I've found it really helps my forge reach temp faster, and get hotter period.
It comes in a powder as well, and you mix it and apply the same way, although I found it easier to get a good coat by making it a bit thinner and sort of painting it on with my hand as apposed to troweling it on thick.
The links are to Darrin Ellis's site, but besides him being a good guy to deal with, he has some pretty decent info on his site too, that helped me out when I was setting up my forge. So check him out, good site
Syn