winterizing an old cabin

[anyway]

I have an old one story three seasons cabin that I would like to live in year-round. The cabin sits on an 8 feet depth foundation.The main floor is insulated, but the basement is nicely finished with two bedroom and a laundry room, but has no insulation.

I would like to know if it is possible to insulate the perimeter of foundation  poviding that I dig down to the bottom of the foundation.  What type of insulation. Styrofoam or polyurethane? What about a moisture barrier?

[DirtyLittleSecret]

Im sure someone more experienced will chime in soon, but Id think that insulating the downstairs interior with 2" RTech styrofoam boards would work great. I've become adverse to digging any more than I need these days.  Welcome!