This isn't my strong suit, but I can tell you that you shouldn't use a Methylene Chloride stripper in your basement. Methylene strippers are carcinogenic and require ample ventilation to use. Your only other option is to use a Sodium Hydroxide stripper which is much safer and probably easier and cheaper too. Here's the dilema in using that kind of stripper; it usually requires water clean up and works best with a pressure washer. If your doing the whole wall or even the whole basement, that's alot of water! Here's my question to you; do you really need to strip the paint off the wall? Is the peeling only in a few areas or is it everywhere?
Regardless of whether you strip or not, you will need to kill the mold with Chlorine Bleach before you do anything to prevent spreading mold spores. If you are going to strip using a sodium stripper, you'll need to know a few things.
1. Sodium strippers come in a variety of formulas, the most common are Deck strippers (Which I think is what you would use for something like this), and heavy pastes (Like "Peel Away"). Heavy paste stripper would be really expensive for this type of project. 2. Sodium Hydroxide is a strong alkaline, it will cause burns on your skin if it is allowed to remain in contact with it for long. I have quite a scar on my left arm from the stuff where it literally ate a hole in my skin. 3. Before you Repaint, you'll need to spray the stripped area with white vinegar several times allowing each application to dry before the next, and following the final application with a thorough rinse with clean water.
Now, I'm going to have to defer to someone else as to what to do about the effervesance and the proper way to apply a finish to this type of wall.