Poly(vinyl acetate-co-ethylene) latex dispersions are prepared and their films investigated with a focus on the effect of composition upon redispersion. Films of dispersions containing sufficient amounts of poly(vinyl alcohol) (PVA) can be redispersed in water. This property is lost in the presence of surfactant, a fact which suggests a procedure to control film formation. It is demonstrated that redispersion is due to a PVA-membrane which separates the particles. Loss of redispersibility in the presence of surfactant proceeds with the breakup of the membranes and a corresponding change of film properties. Experimental data is provided by light microscopy, mechanical testing, and TEM in conjunction with a staining method new to the field. The hypothesis is developed that interaction with surfactant leads to imperfect PVA-membranes that are no longer able to prevent latex polymer interdiffusion. Fluorescence correlation spectroscopy demonstrates the formation of surfactant micelles, as well as the simultaneous adsorption and aggregation of PVA onto the micelles. It is concluded that the competing surface of the surfactant micelles traps enough PVA to cause thinning and fragmentation of the membranes surrounding the particles, which enables interdiffusion of latex polymer This effect can be used to convert the system from one forming a redispersible coating to one forming a nonredispersible (permanent) film.