First question is how good is your foundation and water control outside? This is key before doing anything. If you have good slope away from your house and your basement walls were/are properly sealed, then insulate your walls. BUT..., before you put in the insulation, put plastic (I recommend 6 mil)against the cement, between the wall you built and the concrete. Otherwise, the moisture from the concrete get to the fiberglass AND you will have the problems you mentioned. If you do this, you should be fine. Good luck.
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