insulating basement walls partially below grade
I live in the north of Québec (for what it's worth). The first and foremost way to finish those walls is with spray foam, you get great insulation and the humidity questions are solved.
The next "best way" is rigid foam sheets (pink or blue). Around here the guys hold the sheet against the wall, take a 1x2 furring strip and hold that too, then they drill a small pilot holes and nail away to the wall. The drwall goes over that and your done! (NO vapour barrier).
The "old fashion way" was to put black construction paper against the wall from top to about 3" from the bottom. Frame 2x3 verticaly and fill the voids with fiberglass batts. Finish the wall WITHOUT a vapour barrier and cut 2" x 6" horizontal holes at the bottom of the drywall to let air circulate behind the drywall.
_pete (an insane canadian)