Hello, I have read and seen many ways to insulate basement walls, I want to use styrofoam panels and then a wooden frame with batts, Should I leave a space between the styrofoam insulation and the wooden frame?

Do not leave space between the foam and the wall, that just lets air not get trapped so you loose your insulation valve. Glue the panels directly to the wall. YouTube - Best way to insulate a basement 800x600