Personally, your home will be a constant aggrivation for as long as it stands.
Once block burns, it weakens. Over time, your foundation will crack and possible fail in places. This could be causing the settling.
As far as the wet drywall. In my opinion, if the drywall becomes saturated, to the point where its "moveable", then it should be replaced. The moisture will remain in the wall board for a long time and could lead to mold/mildew issues between the walls, where there is little air flow. Likewise, the wallboard will never be as strong as it was when it was new.
Not knowing exaclty how the house was built, assuming it was all done to code, then if you really wanted to save the new home, I would consider jacking the house and rebulding the foundation, then repairing all of the cracked walls. This will be costly.
If the house still has a "warranty" then there should be NO cracking in the walls. My house has cracks in the walls, but there again, its 60 years old too. Even plaster walls shouldn't crack when the house is new.
Id hire an inspector to inspect the house. If he thinks its okay, then... well okay... but as for myself, I won't buy a house that sits on a burned foundation.
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