I have a basement that's half a level below grade with concrete/cinderblock walls to waist height. From waist to ceiling it is a 2x4 stud wall. Here are my questions...

1. How do I attach furring strips to the half wall for insulation and drywall?
2. What R factor should I be looking at for the concrete portion?
3. Should I use fiberglass or foam board?

Space is an issue, but so is energy efficiency. Thanks for any help you can give.