How do you insulate an old stone basement?
Hyde, I have lived in two such houses, one as a child (mother still lives there) and one as an adult. If you want to spend the money, the best solution is to have the mortar patched and/or replaced from the outside. If you are looking for a cheap, but seriously ugly fix, straw bales around the foundation will block a lot of the air leakage. A former neighbor of mine also used foam insulation boards with expanding foam on his (outside) but it doesn't last long and is about as ugly as the straw bales. Consult with a professional basement repair person before framing in the walls in the basement. A lot of these old homes have moisture problems, especially if you have stone floors too. Good luck!