Insulating Basement???

I'm going to go all Mike Holmes on this but if you want it warm first lay down tongue and groove pink foam on the floor and walls. Lay a wood sub floor over that and secure it using tapcon screws. This is what you want to put the studs on. From there put the rolls or spray foam between the studs with the vapor barrier outside the insulation and then your drywall. Yeah that's overkill but when it's 20 below you'll be glad you did that.
This is exactly what we did in our 95 year old house after we added the drain tile and sump pump. It was an old damp basement and it is now a dry warm cozy area in our OLD house.
 
what is the temp where there is condensation? Very warm moist air is meeting something much colder. I don't know how a board can get wet in a wall.

I pulled the blanket insulation up and it was 57 degrees where the bottom of the wall meets the floor and that is where there was some condensation on the vapor barrier. The base plate is 1 inch off the wall and the blanket insulation goes all the way to the floor. The only place there was condensation was on the barrier that was in contact with the treated 2x4.
 
I was thinking you wanted to have the vapor barrier between the drywall/inside finished surface and insulation (on the studs over the insulation), to prevent contact of the humid inside air (which you want in the winter and may add w/ humidifier) with any temperature gradient from warm to cold to prevent condensation. Otherwise, if the humid air can get into the insulation layers, it will eventually condense as it cools next to the foundation/outside surface. This is how my house was built: vapor barrier on studs over the insulation.
 

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