Insulation, Radiant and Vapor Barriers - Basement insulation, which way is vapour barrier?

I live in the pacific northwest. Does the paper backing face the living space when I'm insulating the basement walls? If I insulate between the floor joyce (basement ceiling) should I face the backing down towards the basement living space, or up towards the main floor living space, or get some unbacked insulation for that? Finally, there is an unconditioned utility closet in the middle of the basement surrounded by interior walls. Should the backing face out away from this space? Thanks.

http://www.eere.energy.gov/consumer/your_home/insulation_airsealing/index.cfm/mytopic=11770

This site will give you some insights on how to insulate a basement. What is not given is the moisture transfer process known as gravity. Not surprising because it is usually overlooked, even by professionals in this industry.

This form of moisture transfer is a fairly easy concept. If you hang a wet towel on a clothes line outside, after a few minutes, if you feel the towel, it will be dryer at the top and wetter at the bottom. The towel represents the house and the bottom of the towel represents the basement. The basement is essential to the water shedding properties of the structure.

Since moisture absorption and expulsion is influenced by amount and time. One of the solutions to avoiding a moisture problem when finishing a basement is to control the amount of moisture generated upstairs. Example, use of kitchen and bathroom exhaust fans that terminate outside the house.