I am framing and finishing the basement in my house. The poured concrete walls and the basement in general is quite dry, no leaks, dampness or other issues. As a precaution I used Drylock sealer on the concrete walls. When I frame up the walls along the perimeter I want to insulate with fiberglass batts. Should I use unfaced insulation to let the walls breathe rather than Kraft faced insulation? I am concerned that there may be a possibility of condensation forming and having it develop at the bottom of the walls. Also I was wondering if putting insulation in the form of batts between the floor joists along the perimeter of the sills at the top of the foundation would reduce drafts and such? Foam would probably be better and tighter, but I am on a budget :-) Thanks for any suggestions........