from stone to concrete wall

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I have a house thats sitting on a stone foundation. It's in the basement and the stone isn't smooth it's kinda like layered stone with pockets and cracks. The type that one would see if they were down a back road and one would look out into the woods and see those stone boundries.

What I want to do is turn it into a cement wall. Is there a way to mix up some cement that is resistant to moisture and water leaks and plaster all over the stone and then smooth it out.

Also is there some type of product that can be sprayed on the walls, some kind of thick foam that hardens where I could spray into the cracks between the foundation and the base of the house. I'm new at this so forgive me for not being to bright at these things.

My whole point is to turn the basement into a living area. Any suggestions. I live in CT, just for curiosity sakes.

Thanks,
Bill

Email me at bdeteau@earthlink.net