Need some advice on a basement remodel. Due to recent water I have stripped off existing paneling. Found 1x2 furring strips with no insulation. Walls, strips and paneling looked fine. Small amt of efflor on the lower wall. I have sealed cracks, wall/floor joint and will be addressing a clogged foundation drain tile which all contributed to the damage. Question is since strips and walls look good after 25 years as is, can I hang mr drywall on them or should I foam board,stud wall then drywall. Thanks!