I am fishing my basement, currently there is paneling installed, no insulation behind. I am going to be putting up drywall, I was wondering if I should install foam insulation behind the drywall on the exterior walls? The basement is not heated. Also, what would I use to attach the insulation to the exterior walls?

LOST- You can go to Lowe's and get a glue that you can adheare the foam insulation to the outside walls ;;note-just be sure you get the type that you can use on foam insulation and{ NOT MELT IT} also after you hang the sheetrock on the walls ,it will hold the insulation in place on the walls ::: Have a great night and a better tomorrow ,GOD BLESS::F.B.E.

Depending on the amount of space you have to work with,you can use regular Kraft face insulation attached to the studs.

How deep are the studs?

Thanks for your responses, I haven't removed the paneling yet, however it looks like it is attached to furring strips. I was probably just going to take them down and frame out the wall myself. In addition to the insulation, should I use a vapor barrier as well before I hang the drywall?

Absolutely,you will have moisture building up behind the walls in a basement setting,I have used a 6 mil plastic over the insulation and studs,allowing the bottom edge of the plastic to drape along the floor.(later to be trimmed the width of the new wallboard.)

Raising the drywall up the thickness of the sheeting I was using(1/2 inch) so any moisture that could accumulate can disburse without wicking up the drywall.