Hi Andyman
Thanks for your reply. There is already yellow batt insulation there - he was going to remove it, then do his thing with the foam and new batt....hence my puzzlement.
See, where this all began is that we have had really high energy bills and wanted to look at ways to conserve energy...esp. since I work at home so our energy use is higher than the average bear anyway.
I had an EnerGuide for Houses audit done and they recommended several improvements, including:
Attic: current = R15, increase to R50 to save 6% on energy costs (I've since heard from several sources that you need not go above R40 - so I'm getting quotes for blown-in cellulose to get me up to R40)
Basement: current = R1, increase to R20 to save 12% - having a heck of a time finding someone to even call me back about installing insulation - I guess everyone is so busy with new home construction

- and then this fellow said don't bother insulating down the walls, just do the top as per my original post
Space heating: current low efficiency, change gas heater to high efficiency to save 30%
...and then misc. things like caulking, etc.
I'm starting to wonder, should I just skip the basement and focus on my attic and getting a new heater, caulking etc., then worry about insulating my basement further when we get around to actually doing any finishing / renos in the basement?
And how can I tell what the R-value of the current batt is? (I suspect we got an R1 rating because the basement walls are only half finished)
Thanks again
Peeth