Framing a cement room
I did a lot of research before finishing our basement. Traditional thought is:


vapor barrier
wood framing
fiberglass batts
sheetrock


And every basement I've been in using that method has smelled really musty.

Building Sciences Corporation has some good research on this:

http://www.google.com/search?client=safari&amp;rls=en&amp;q=building+sciences+insulating+basement

Based on that, here's what I did, and what I recommend for all basement remodels:


eps or xps sheet insultation, glued and taped to wall
metal studs. baseplate should be separated from concrete via thin insulation.
paperless sheetrock (use the fiberglass faced stuff...itchy, but won't attract mold)


Note the lack of a vapor barrier. The idea is that this leaves the system slightly breathable. XPS and EPS are vapor permeable so moisture can eventually dry to the inside. 

The added bonus is that metal studs are SO much easier to work with than wood. They're light, straight, can cut with a tin-snip and you don't even need to use screws (you can crimp them all together). Plus, they won't let mold grow.