Boy, I'm definitely not a Dry-loc fan. It only stayed on where the walls are always dry. Everywhere else it crumbled off and created a huge mess. It is possible to paint over it, though, and the most successful paint I've used (because it doesn't discolor due to damp or existing stains) is Zinsser shellac based primer. It lasts for a good long time, stays nice and white and although it flakes off a bit where it becomes moist, it doesn't require anything but washing with a bleach solution before I put on another coat...usually every 5-8 years. I've been doing this for the past 20 years or so with the house we're in now.
Q