Saved the best for last!

Before you go any further with remodeling, investigate and remedy that bulging, which indicates a degree of foundation failure that should be corrected before you hide it and forget it. See link.

Here is a link that might be useful: Inspectapedia on foundation bulging

Thank you the inspectapedia has a lot of great info. After seeing some pictures of other basment walls our cracks seems minor. If anything I am leaning toward digging out the front to put in some drain tiles - we live on a hill and there is not that much we can do for the water that comes down the yard, we have done everything we can with sloping and grading. I would like to get an expert opinion but I am afraid that companies will say what they need to to sell their product.

There are a number of effective methods for waterproofing your basement.

See this GW thread.

On new homes, I always use a bubble membrane and freeflowing fill.

If you're only doing one wall keep in mind that this may not solve the problem. Also, since you're putting in a drain system, you have to provide an outlet for it. It can be trenched out to grade somewhere downhill or brought inside to a sump and pump.

I'd run from any "waterproofer" who wants to sell you an internal system. They do nothing for keeping the water out of your walls or from undermining your footings.