I think Paco's lose is not all about the openings or this line in particular.  He started a premature flank attack with h4 and got his king in trouble later on.  But it took great defences from Svidler though.

Black must be very careful though. This system is quite rare so it's hard to remember all the intricacies of the main lines involving 8.f4. They can be quite sharp and black can be quickly busted if he doesn't react accurately. Don't forget to be active and daring - that's the key to get out of the wood.

Recently several games were played on this line at a very high level (it tends to prove that black can have some practical problems). In the latest one Krasenkow chose a surprising move 5...Nxc3 (I don't remember who was white), which seems to fall into white's idea after 5.Bxc3, but he managed to draw eventually after not suffering that much.

DarMc2,

It is in Rowson's book, Understanding the Grunfeld, pp. 51-54.  He cites the 1994 game, Kacheishvili - Svidler, in which after 5. Bd2 he gives, 5...,Bg7  6. e4, Nb6!  7. Be3, 0-0  8. Be2, Nc6  9. d5, Ne5  10. Bd4, c5! 11. Bxc5, Nec4, etc.  In his intro. to the games he wrote, "Smyslov was fond of this prosaic system..."  
This is about all I know of this line, and not being a strong player, perhaps, someone else can add more data involving your question.

Bearheart