Ok children. I am not boasting about having a 15million square foot house that im looking to have 17 zones of heat in. I just want some simple suggestions on what i should do from here...

Bought a house, started to tear out the cheap wood paneling on the ceiling and walls in the basement. Upon removal i found some slight mold and water discoloration behind the paneling on the drywall. My question is how should i combat this? The basement never see's much humidity, normally its been around 50%. I've heard different things and would like some input on whether i should pull the 2x4's completely off the wall and seal behind all them and put it all back up, or just pull the insultation, seal up to the 2x4's and then put the new insulation and drywall up. I would also seal a few feet out on the floor. Ive heard to use drylock or densifier on the walls and floor. Ive also been told to seal, put up insulation, and then put 6mil plastic over that, and then drywall.

Whats your take on this?