Adding a Attic

Question: What is a good waterproofing paint/compound for concrete basement walls? I have just purchased a house built in 1955, and in need of lots of TLC, starting with the basement. The concrete walls were painted a long time ago and the lower half of the walls have loose paint and a crumbling surface that falls off with a slight touch. The inspector describes it as "heavy efflorescence under foundation paint. Spalled concrete wall surface. Evidence of heavy water penetration in past." There does not appear to have any deep accumulation of water, i.e, no water level stain marks on walls, lally columns, etc. The inspector suggested I wire brush the wall, vacuum up the debris, and apply a wall waterproofing paint. He believes that, as well as new gutters should solve the problem. Can anyone suggest a good product that I can handle myself (an average size woman)? Also, should I put this paint to the floor as well?

Recently purchased a 30 year old one story 30'x70' ranch built over a 4 to 5 foot crawl space with dirt floor. The foundation has vents with opening/closing louvers all the way around. Should the louvers be closed during the winter months? The floor is not insulated. I plan on laying plastic over the dirt to help stop moisture, but have not done so yet. Also, I think I would like to insulate, with foam, the forced air furnace vents as the heated air at furthest ends of the house is not very warm. Any opinions? Pat