We have a 1958 split level house with the family room and a bedroom half below-grade. A remodel project necessitated removal of the pine plank paneling installed on the exterior walls in the family room. Underneath the paneling is the cinderblock and brick foundation. The paneling was attached with slim furring strips nailed to the block. There is a minor problem with dampness in that room, but no signs of damage to the walls or foundation.

We would like to put up sheetrock to replace the paneling. Several questions come to mind.

Should the cinderblock foundation be sealed first? If so, with what?

Insulation also seems appropriate (we are in northern Virginia and have fairly cold winters). What type of insulation would be best? Should we use a vapor barrier?

The existing furring strips are not adequate for attaching sheetrock. Should they be removed prior to sealing / insulating? Should the holes left behind be filled and if so with what?

And lastly, what type of framing should be put up to hang the drywall?

Your suggestions are appreciated.

Thank you,

KatieSue