not sure about live but dead can be used, check out this post for an amazing scape using it
http
/www.fishforums.net/index.php?showtopic=143199
I absolutely love this tank. Very creative! Where can you get dead bamboo and how would you treat it before placing it in a tank?
I asked an employee at Petsmart about fully submerging live bamboo and she said she didn't see why it would cause a problem. Taken with a grain of salt though. I guess it's something we'll just have to try and see what happens.
I'm bumping this incase someone else knows any more about it.