I'll try to make this short:

We HAD: an ugly semi-finished basement; some sheetrock on interior walls, 80's paneling on exterior walls, glue-on vinyl tile floor, drop ceiling.

NOW: after finding mold behind nearly every wall, I am demo'ing the whole thing. I'm left with waterproofed block walls that have at least one long thin crack in the seam (two walls are gonna require bleach scrubbing) and rusty spikes sticking out all over the place. Concrete floor has been painted, and lots of adhesive residue from the vinyl tiles. I have fixed the negative sloping grade of the landscaping, and water should all flow away from the house.

The PLAN: We will use the basement for a play area, workout area, workshop (mostly just fly tying), and a family room area. We would obviously love to sheetrock everything and make it look as finished as possible. But, after seeing how much water damage was behind those walls, I'm very apprehensive to do so.

I guess I have several concerns...

1- The crack in the block seam goes for 6' (that I can see), and it's basically a hairline crack. I've heard good things about hydraulic cement...is that suitable for keeping water from seeping thru those thing cracks?

2- After scrubbing the walls clean, I will re-cover with a fresh coat of waterproofing paint. I am seriously considering not sheetrocking over the block (just so I never have to worry about what's going on behind the walls). Can I paint over the waterproofing material with a latex paint? I will have a few interior framed walls to make a couple rooms.

3- The copper that runs perpendicular to the joists is below the joists. And we have some crazy-routed sewage PVC that seems to be hanging down awfully low. I'm comfortable making the changes to the plumbing to enable us to raise the ceiling height...but how do I know what my options are for re-routing?

4- I'm already scouring old threads for advice on a sump pump w/backup pump. The only water we've had in the basement since we have lived here is from three...THREE sump pumps failing. Thanks, Lowes!

5- After I grind the floor clean, I'm gonna DIY acid stain the floor.