Ok, then! I won't remove the framing when I get in to it. I have not the faintest idea if they installed a vapor barrier when they originally installed all this stuff - but, since the mold/mildew I saw was in a fairly small area, I think they may have, and whatever moisture problem I had in that area is from a different cause. I found an excellent article about mold and mildew problems, but I neglected to save the link. It taught me a lot tho. I am aware that whatever it was will never truly go away, but I don't think it is currently active. I also don't think it was from the bathroom moisture, because it is about 6-10 feet farther down the wall, in the "cellar" section - separated by a stud wall and all that distance. Of course, it COULD be, no doubt, but I also believe in KISS, and that would tell me that a different problem was the cause - like perhaps the washer exhaust repeatedly backing up into the cellar area. We have an existing exhaust fan - but I've realized, reading here, that we should be more rigorous about using it. So I'm back to the original concept - 1/2" concrete board for the wall tiling! I will guess the current insulation behind whatever is there now is fiberglass - most of the house insulation is, and I know other areas of the wall inside the foundation are fiberglass. Foam could be arranged, I suppose. You are thinking of urethane foam? Thanks!

If you are going to paint with dry-lock the dust issue will be lessened. There is a picture of a poster who did the black paint on the ceiling thing. I haven't seen the finished room but it does disguise the unfinished look. This technique is very popular in restaurants. Once you get living down there the dust issue will be dealt with, with regular cleanings. I like the light paint idea for light better. I am not a fan of dark caves myself. I too would go with scraping and re-painting the floor. I did my laundry room in white and it not only holds up it is easier to sweep. I did mine in Kilz/water lock cement block paint. I would not invest in much if you aren't up for the full job. Three houses tells me no one wants to hang out in what feels like a basement. How old are your kids? Maybe you would be better off to create an indoor play ground down there? Hang a few swings from the rafters, get some toys on wheels let the kids do more gross motor play down there. I also kept all play-dough play downstairs. Without finished walls, warmth, heat source and lots of light, the more natural the better, it just will never be a second family room, in my experience.

Do you have a measured layout? Without measurements, we cannot really come up with something other than guesses. I tried to use the stated dimensions on the plan, but they didn't make sense when comparing them to the items on the drawing. Can you get into the house to get accurate measurements of the space? The following link will help as well - it describes what we need to help you get the best layout How do I ask for Layout Help and what information should I include? http://ths.gardenweb.com/discussions/2767033/how-do-i-ask-for-layout-help-and-what-information-should-i-include .

Adding that archway would completely mess up the living room layout. Furniture arrangements would become very difficult and it would become a traffic path. Maybe consider shortening the wall, so keep the bench and closet, but lose the second smaller coat closer and maybe even shorten the other stuff. It will still create an entry way and block sound from the living room but it wouldn't create a super long closed in hallway. You may want to also reconsider the kitchen area. That pantry is way too far away to be useful and the dining room looks tight once you account for all of the traffic paths.