Get the fibreglass out; it will become wet and mouldy. Or precede it with a layer of extruded polystyrene board. Just how violent are your kids? If you're really concerned, you can use a commercial grade of drywall vertically installed. Or add paneling over drywall. Another possibility is to use foamboards (XPS) alone as insulation and spay it with a cementatious coating needed for fireproofing that can also serve as a finished, if not particularly attractive, wall. Here is a link that might be useful: Building Science Corp.: Basement Insulation Systems

That stud is nailed in place with a neighboring stud (there are 3 all next to each other: 2 to hold up the lintel, one to take up space since the cabinet extends 1/2 inch into doorway) The cabinets are also screwed into that stud along with the drywall. So I can't easy take that stud out. I have to cut a part of it off with it in place. I'll have probably have to do the hand planing idea, and finish the part near the floor with a hacksaw or something. A door will not be hung there. This was just going to be drywalled over to be an entryway. Jonnyp - The stud was straight. I know about eyeballing studs. The issue is that it was squared up, and nobody noticed it shifted as it was nailed into place.

Thanks everyone! I am asking my contractor to redo the wall. To make it more understandable, we remove a supporting wall recently and replaced with a steel beam. It is the location where the steel post is (supporting the beam). It has passed strict inspection so I don't think there is structural problem. As silky367 suggested, I put two sewing thread (one with a key another one with a nail) on the wall, you can see the spot close to the door is not that wonky but it gets really bad at the end. So I think it is more likely the lack of craftsmanship. Will find out. Thanks again for everybody's time and input! If you have more suggestions, please kindly let me know.

I've done some renovation (including finishing our attic) but not a basement, and not an entire basement (40'x20'). (In Toronto, Canada.) We've gutted our old basement down to the cinderblocks, redone the floor plumbing, added water barrier, weeping tiles in a ditch and a sump pump - all professionally done. (I wanted to level the concrete floor but have been advised this is not necessary (and a bad idea, since it will defeat the purpose of letting any influx of water run to the drain). So I"m going to lay vinyl flooring.) Our basement has a low ceiling in addition to a centre steel beam, meaning thinnest floor is preferred. First step though is to finish the exterior walls. As mentioned, the walls have that black plastic dimpled layer of water protection. Do I need to put up a vapour barrier in addition to this? Do I simply tack it right to the water barrier layer? Over the water protection layer I'm going to put studs. I should use the Blue moisture/mold resistant stuff, right? Online advice suggests not to use fibreglass batts, as they absorb moisture. Use solid foam panels instead, but these are not fireproof, so advice is to top it with a layer of Roxul? If so, this that eliminate the need for drywall? If I still have to lay in drywall then the Roxul seems like an extra layer I have to cover my 120'x7' of walls with. Any other gotchas would be welcomed.