Answer #1: The best way to prevent the problem is to divert the water away from the house at the outside. If you have hilly terrain, put in a french drain and let gravity take the water away from the house.
Answer #2: TO SEAL THE WALL USE A BLOCK SEALER WITH PORTLAND CEMENT. THE UGL BRAND WORKS WELL FOR SEVERE SITUATIONS. HOWEVER, THE WATER STILL DESTROYS THE FOUNDATION IF YOU DO NOT DIVERT FROM THE OUTSIDE.