I'd to like to put sheetrock in front of conrete basement walls (only up 4 feet). I'd rather use furring strips instead of 2x4 framing because this particular room is small. What size furing strips are recommended and also what size sheetrock screws?

In this room there is currently 1950's paneling attached to 1" furring strips.

 

You can use as little as 1x2s for furring strips. However, there won't be much room for insulation, and your electrical boxes will have to protrude from the walls (unless you mount them over the 4-foot wall). Better would be 2x2s, which will give you room for more insulation, and recessed electrical boxes (but just barely, and only if you plan very well). Best yet would be to use a 2x4 stud wall. I know you are trying to avoid this, but I can almost promise you that you will never miss those two inches.

 

What do I use to attach the furring strips or 2x4s into the concrete - masonry screws?

 

What a coincidence, I just logged in to ask the exact question. I spent the day ripping out 1' sq. ceiling tile and wood paneling from a basement room. The furring strips are all 1x2, the ceiling height is nearly 7'. I see the advantage of 2 x 4s, but in my case it's not the space I'd miss (the room is 12 x 19'), but I'd much rather use the existing strips and save the time, headache & expense of replacing them.

That being said, I might just rip out the strips & re-attach 2x4s. The reason is that over the years I can see some indication of water damage to the walls (I'm going to post a separate question about this).

I hadn't considered insulation, what do people use for basement wall insulation, stryofoam type of sheets?

Bob