Basement Finishing Method

I am looking to start finishing my basement. I live in northern NJ, and I have an interior drain system that goes around the entire perimeter of the home. The system has an open channel at the base of the wall. The channel is anywhere from 2"- 2 3/4" wide at some points. I am trying to determine what the best method of insulating and framing (ie rigid foam glued to walls?, lumber or galvanized studs?) would be, as I can't seem to find any how to video's that deal with finishing a basement with an open drain system like mine. Any help would be greatly appreciated.

Thanks,

Nick