Bob is not here, but if you look down through the posts there is a lot about finishing basements.
In MY opinion you should consider the following: * Seal the block with a sealer containing Portland cement. * Install a vapor barrier. There are many posts on this. * Frame all walls, wire for outlets and ceiling lights, address any plumming needs, then have it inspected! * Next insulate. I would use the styrofoam stuff. Its less affected by small amounts of moisture. Just personal opinion. * Finish walls and ceiling.
You also need to consider what you want to do with the floor. Many options here.
In my opinion, its always going to be a basement. You can finish it nice, but plan for occasional water suprises from things like when hot water heater decides to blow, washer overflow, a once in 100 year flood, or even a leaking wall after time. There are posts about keeping the bottom edge of the walls 1" off the floor in case of water. Using galvenized steel studs versus wood. Using linolium and throw rugs on floors in case of water. Also many posts on what to do now that the basement is flooded. They might give a perspective as to what to watch out for.
My basement doesn't leak. But I chose to paint the floor and put down throw rugs. If the water heater decides to dump 50 gallons of water while I'm at work, I can put the rugs outside to dry, and shop vac the floor. I say plan for at least 1 flood and consider what it will do. Others may tell me I'm all wet or agree with me, but reading the flooded basement posts should provide some incite.