Thanks for your responses and clarification questions. My original idea was to insulate w/ fraft facing material on the inside and a plastic moisture barrier between the studs ( I am going w/ metal.) and the block walls. I now realize that this will cause condensation problems. I do plan however to seal the block walls at and below the grade line. I have a walkout basement so the grade decreases front to back. Based on your comments, I think I will stick w/ Kraft and forego the plastic vapor/moisture barrier. Any furhter comments? I am starting my basement today! Thx.