I have a tri-level home. The bottom level's wall is an above grade concrete block wall that currently has paneling over furring strips and white polystyrene insulation. The exterior is brick. The house was built in 1975. I have no idea if there is any type of barrier or insulation between the exterior brick and concrete block. I would like to remove the paneling and install drywall. I don't have a moisture problem that i'm aware of. I would like to insulate the walls better. I'm looking for suggestions for the best method and materials to use. I'm thinking i would like to strip it down to the bare concrete wall, glue some type of R-board to the wall, tape the seams, build 2" x 4" walls, insulate with fiberglass insulation, and drywall. Is that overkill? Thanks for any advice.

I need to repair the wall behind the laundry tub faucet. (If you click the photos, they should enlarge.) [URL="http://imageshack.us/photo/my-images/15/dscf3357l.jpg/"][IMG]http://img15.imageshack.us/img15/5441/dscf3357l.th.jpg[/IMG][/URL][URL="http://imageshack.us/photo/my-images/341/dscf3356s.jpg/"][IMG]http://img341.imageshack.us/img341/1087/dscf3356s.th.jpg[/IMG][/URL] The paint is blistered and peeled some, and the sheetrock is damaged mostly superficially. To me, it doesn't appear to need a tear-out. I could remove the plumbing if necessary. I am wondering what to use to fill the damaged area and then how to re-coat the wall. How is this normally done in finished basements when the laundry tub is mounted against drywall? Is there some kind of epoxy covering for this area? Thanks, Gary