There a lot of products out there for insulating basement. Fiberglass batts, polyethylene, blanket insulation, polystyren, foam insulation, EPS, etc. What types of insulation would you consider when installing drywalls? I believe moisture is one of the biggest problems as it leads to mold, decay and odors. I learn today that moisture not only comes from leaks through cracks but from air leaks (specially summer), capillary raise from foundations, diffusion, etc.

Do foundation walls make a difference, i.e. if it is poured concrete, pre-cast vs masonry?

Are sealants, adhesives or gaskets recommended? Is it worth the investment?

I would also like to know what difference of materials (insulations) should be used for outer basement walls vs. interior walls. Depending on the type of insulating material you will need to utilize studs or 2x2 nailers. Is one method better that the other?

I know there are many questions but one leads to the other.

Thanks in advance.

Your local building department may have specific requirements.

Other than that, try this web site.
Keeping the Heat In (http://oee.nrcan.gc.ca/keep_heat_in/chapter_5/chapter_5_2.cfm)

A lot depends on where you live and how your home is constructed. Do you have a sump pump and curtain drain and have you ever had even a drop of seepage. In the midwest we use treated lumber for the floor plate, cover the wall with visqueen and insulated with R13 rolls unfaced. We leave the bottom foot of the wall cavity uninsulated because we actually want t touch of heat to reach the floor/wall connection. We want that spot to never freeze since it opens up the connection. Rigid blue insulation should be used if you ever get seepage, it will not support mold. Use paperless drywall too.