We just bought a new house, gutted the 1960's finished basement 'cuz of an awful stink and found out that the wall between the basement and garage is simply wood-framed with regular drywall and fiberglass insulation.

Since it's halfway down already, I'd like to completely replace the wall with something fire (and water) resistant.

Can anyone list the best materials to use and the best way to build the wall?

I worry about the drywall going to the floor, and even the wood frame on the floor because of water from the car when it rains or snows.

I'd also like the wall to be relatively bug and critter proof.

Thanks for any ideas and help!

Would that be waterproof?

Then I could just frame with wood on top of it, right?

Sticking the concrete blocks to the concrete floor with mortar is trickier that it sounds. The concrete blocks will stick to each other nicely, because they are clean and have rough surfaces. Your existing concrete floor is probably dirty and smooth. You need to make it rough and clean to get the blocks to stick well with mortar.