I'm finishing my basement in my 3 year old home in Missouri. I have the framing and electrical done. I'm trying to decide on how to insulate or even whether to insulate at all. It remains a pretty constant temp. I'm concerned about moisture being trapped in the walls if I use fiberglass insulation then a vapor barrier. Can I just not insulate and put vapor barrier up or what other options would anyone recommend. Not sure about the spray foam insulation option. Thanks,
Dave

Have you properly sealed the basement on the outside for moisture and water invasion? You need to be sure that no additional moisture will enter this space before you use any kind of insulation. Would recommend using the kraft paper insulation as moisture will not be trapped behind the insulation and cause problems. What have your neighbors done with their basements in your neighborhood? If they have a newer home like yours try speaking with them about their problems or no problems that they've had doing their particular type of insulation in the basement. Some areas of the country are wetter than others and the same goes for basements in certain areas taking on more moisture than others.

Well, the builder used the black tar like stuff on the outside. I have had a couple cracks leak a little bit but have had those cracks sealed up and no water since. We've had a really wet year too. Not sure if any neighbors have a finished basement but I can ask around.

First, at this stage you should insure that you basement is dry and you have no moisture problems. Correcting moisture problems later will invariably necessitate damage to the finished wall and floor surfaces.
Second the moisture barrier does not seal moisture in or out. The moisture barrier keeps warm moist air and cooler air masses separate. When warm air, which can have a higher relative humidity, and cooler air meet, the warm air is cooled and condensation occurs.

Insulation is for energy conservation. Whether you should insulate depends on the temperature variations in your area and how much of you basement walls are below ground. In moderate temperature ranges, insulation below ground may not be considered cost effective. Generally over a long period it is cost effective, especially with rising energy cost. The craft paper moisture barrier is quite adequate; the foil facing provides some additional insulation value and is not an enhanced moisture barrier. Because it can trap moisture I would not recommend a plastic sheathing. The moisture barrier always goes on the warm side. The spray foam insulation is considered to be the best insulation because it seals against air infiltration. It is expensive however. Houses need to breath because people give off moisture, that is, you need some air movement. Seal a house too tightly and you will have moisture problems.

We have 9 ft basement walls and all but about 1 to 1.5 ft are underground.