Glyoxal-based condensation resins like 1,3-dimethylol-4,5-dihydroxyethyleneurea (DMDHEU) have been used to modify wood and improve its resistance against decaying fungi. High biological durability of DMDHEU-treated wood has already been confirmed in laboratory and field tests in the past. However, the modes of protective action behind an improved decay resistance are not fully understood yet. Furthermore, it is questionable how the use of formaldehyde-poor N-methylol and formaldehyde-free N-methyl compounds instead of DMDHEU affects the moisture behavior and durability, respectively. In this study, wood blocks were treated with N-methylol (DMDHEU, methylated DMDHEU) and N-methyl compounds (1,3-dimethyl-4,5-dihydroxyethyleneurea; DMeDHEU). Untreated and modified specimens were exposed to different moisture regimes and wood-destroying fungi in order to study the indicators that control changes in the wetting ability and decay resistance. Both N-methylol and N-methyl compounds decreased the water uptake and release and increased the durability of Scots pine sapwood from ‘not durable’ (DC 5) to ‘very durable to durable’ (DC 1–2). However, high fluctuations were observed in water uptake and release as well as mass loss (ML) caused by fungal decay, when modified specimens were tested without passing through a cold-water leaching. Consequently, a significant effect of the leaching procedure according to EN 84 on the durability classification could be established. The latter appeared more pronounced for treatments with N-methyl compounds compared to N-methylol compounds. Finally, wetting ability (kwa) and resistance indicating factors (kinh) enabled a forecast of high biological durability for both treatments with N-methylol and N-methyl compounds under real service life conditions.