We show that in the presence of substrate misfit and compositional str
esses, static or growing films that undergo surface spinodal decomposi
tion are always unstable to perturbations around the planar surface. F
or sufficiently rapid deposition processes, the planar surface can be
stabilized due to a suppression of the alloy decomposition. Films grow
n outside of the miscibility gap can become unstable due to the mismat
ch with the substrate and compositionally generated stresses. We also
demonstrate that the instability is independent of the sign of the mis
fit when the elastic moduli of the alloy constituents are equal, and t
he existence of a maximum misfit above which the film is always unstab
le, even at high growth rates. The symmetry under sign reversal of the
misfit can be broken by composition-dependent elastic constants. [S01
63-1829(98)05508-8].