Hi Michael and Thomas,
The difference between the confined model and unconfined ("phreatic"-option) model is quite simple:
In a confined simulation, FEFLOW calculates only the Darcy-equation.
The phreatic model is quite similar, just that if the cells pressure (not hydraulic head) falls below zero - meaning that it becomes dry - its conductivity is reduced linearly with its saturation. To avoid that the cell becomes absolutely impermeable, the water depth in the cell is not allowed to fall below a certain residual water depth (this can be adjusted in specific option settings).
The "free+movable" approach is essentially a confined approach, whereas the top slice is constantly shifted to match the water table. It can yields excellent results for homogenous aquifers, but also has a lot of pit-falls and should be handeled with care, especially if having heterogenous materials, 2nd, 3rd or 4th kind BC (which are shifted as well) or if the aquifer is falling partially dry.
In these cases, "phreatic" is more convenient and robust. It also gives the possibilities to simulate several free water table on top of each other.
The mathematics are described in detail in the reference manual chapter 2 and Whitepaper Vol I, chapter 2
give it a try!
Alex.