There are three primary reasons to use underlayment with floating hardwood floors, according to FastFloors.com. The first is to smooth out minor imperfections in the subfloor, leaving as flat a walking surface as possible. Secondly, an underlayment helps deaden the sound of foot traffic. Keep in mind that the hardwood is not attached to anything below it, and this gap can create noise when weight is applied. The final purpose is to slightly soften the impact, making the floor more comfortable.
In the old days, simple roofing paper was a common choice to use beneath floating hardwood floors. It was moderately inexpensive and thought to repel moisture, which is a big concern when laying flooring. As more modern homes began to be built on concrete slabs, with hardwood laid directly on top of it, an entire industry of alternative underlayments sprang up. While roofing paper still works, you might want to investigate some of the newer alternatives.
Though it is called many different names by various manufacturers, most underlayment is made of standard foam padding about 1/8 of an inch thick. Foam should only be used when there is no danger of moisture seepage, since foam does not have a protective layer against water intrusion. Foam is commonly used on ground floors with a plywood subfloor or higher floors in apartments or condos. Close proximity to neighbors might call for a cork underlayment, which deadens sound more efficiently than foam.
Less common than foam are other types of underlayment like cork, special glues and vinyl. For years, the National Wood Flooring Association recommended #15 roofing paper beneath hardwood floors, according to HardwoodFlooringTalk.com, but ongoing studies began to show that it was a moisture retardant but not a moisture barrier. As flooring technology advances, expect to see new and unique types of underlayment in the future.