I read somewhere that masonry is supposed to breathe, and for that reason you shouldn't paint it with oil-based primer or paint. Is that right?

I think his rationale for the Kilz suggestion was to provide clean surfaces where mold is a little less likely to take hold, to immobilize any remaining spores and to provide some water-proofing for the masonry. He stressed that I should use oil-based Kilz. (Needless to say, he also recommended a dehumidifier.)

Aside from breathability of the masonry, I'm also wondering about VOCs. Clearly the oil-based Kilz is high-VOC stuff, but I'm wondering if that's much of an issue after it dries. My inspector said it is high-VOC but that after a couple of days, it's not emitting VOCs anymore. This is a basement area that will serve only for storage, not as a living space, but air from the space will make its way upstairs via the HVAC, so I don't want long-term off-gassing.

-Ryan