Hi Brian! Here's my two cents worth.. 1) If the concrete walls are very moist, you need to seal the OUTSIDE of the walls 2) I would put the poly on the studs just under the drywall, it's there to prevent humidty from entering the wall 3) VENTILATE your basement! You should have good evacuation of humid air 4) I hate carpet in basements! Rubber backings or not Remember humidity doesn't only come from the concrete! 5)HAVE A GOOD DAY!