We are beginning to renovate our basement. It was finished by the previous owner probably about 20-25 years ago. I removed the wood paneling and was delighted to find that the walls were fully framed using 2x3 studs.

Between the studs and the foundation wall is a layer of heavy, metallic paper which I assume is Relfectix. I assume this was used as insulation. (I will try to add an image, but don't see the button to do so right now.)

We have never spent much time down there, only going down to do laundry, but it feels comfortable. I keep the t-stat set at 60 degrees, though it will be higher when we start utilizing the room as living space. We are in eastern Massachusetts, so it can be quite cold in winter. House was built in 1950. We use a dehumidifier to keep the basement dry in summer, though it doesn't get too damp.

I've also noticed that the studs are spaced 1⅛" away from the wall. Is this gap required for the Reflectix to work properly?

We're planning to put drywall on the studs. Should we put in additional insulation? The Reflectix seemed to be sufficient for the previous owner.

Thanks!

Here's the image

http://www.flickr.com/photos/76565901@N07/6871360291/