More on the subject of insulating basements: vapor barrier, moisture barriers

[MikeT]

I am trying to identify the best way to insulate my basement and found the article below.  It is pretty detailed, but the bottom line is that it appears that many of the old ways are ineffective, bad, or really bad.   It appears that the best thing to do (on the interior) is to affix polystyrene to the concrete wall and then furr out on top and then use sheetrock. 

www.eere.energy.gov/buildings/building_america/pdfs/db/35017.pdf

If I am reading this incorrectly, please let me know....

Best,
Mike