Hi Bill: I debated with myself at some length on the same topic before I finished my first basement. Basically, what the plastic vapor barrier is there for is to keep moisture from oozing through the wall and getting into the framing and insulation, should you ever get a basement wall leak (for whatever reason). But to keep moisture from accumulating down at the bottom plate and spreading out into the room, the plastic sheeting must be contiguous with a drainage system running around the inside perimeter of your basement, as has often been discussed here before. Now, will there be a problem with the interface between the plastic and the masonry wall being perpetually wet in some places? I honestly don't know, but in the last 3 basements I have finished, like Steve, I have never noticed a problem (musty odor, etc). I did have to cut into my finished basement wall after it had been up 4 years, to repair an accidental punch mark (teenagers!), and I noticed that the plastic as far as I could reach and feel through my repair hole, was as dry as the day I had installed it.