I just bought my home, in Northern Kentucky, about 4 months ago and I am planning on refinishing the basement into a rec room. The house is 10 years old, and there are about a dozen hairline cracks in the walls (nothing wider than 1/32"). The floor is in good shape, although it doesn't pitch toward the drain very well. I have never seen the walls or floor leak since I have lived there, and it has been pretty wet outside at times. I can't see any evidence of leaks. There is no efflorescence or water marks on the walls, and the air feels dry. I was considering using a product such as drylock to seal the walls and hopefully the cracks. I have the following questions regarding the sealing and insulating of the basement.
1) Is drylock (or any sealant) effective for sealing hairline cracks, or do I need to chisel out the cracks and fill them in with hydraulic cement, or some type of caulking?
2)Should I seal all of the walls and floor?
3) If I seal the walls do I need to use XPS (or EPS) on the walls, if so what is the minumum recommended thickness?
4) Should I use faceless fiberglass insulation between the studs? Should I leave a gap between the studs and the XPS?
Thanks for your help.