Walls and Ceilings - Insulating/sheetrock over concrete walls

Hi all - I'm in the process of renovating a house.

Walls in basement area are either concrete or concrete over block.

I want to insulate & sheetrock the room. Basement is currently damp (no water) as its unheated. We are planning on heating it and using as a family room.

1. Would a good option be to simply building 2x4 walls inside the existing and insulate/sheetrock?

2. In addition to insulation (w/paper barrier) I'd like to install plastic
sheeting....and the same old question - plastic would go between insulation & sheetrock right??

If you plan on having an electrician run outlets, then yes, you probably ought to build a 2x4 wall. If you won't be adding electricity to the exterior cement walls, another option might be 2x8 panels of Styrofoam wallmate. It's an ingenius product that makes finishing basements pretty easy.

http://www.dow.com/styrofoam/na/res-us/products/wallmate_slotted.htm

That's a good system, go with the 2"x3" and there's room for outlets which you're going to want. Good call XSleeper. :thumbup:

It is always a good idea to paint the walls first with drylok. Even if there is no moisture passing through the walls now it could prevent a problem in the future when it would be more costly to fix.