This is my first post. I'm a newbie trying to learn the basics. I have an unfinished basement with block walls. After I seal the walls with waterproof, I would like to frame out the walls. That i know how to do. The few electrical outlets are from the 1940's, so I will need to get my electrician friend to disconnect the electrics. After the framing, does the electrician run the new electrics at that point, or do I insulate first? Also, where does the poli vapor barrier go? Does it cover the insulation and the electrical wiring, with vapor tape framing the fixtures and outlets? I'll be finishing with cement board. Any suggestions will be appreciated.

You would do the electrical after the framing, then insulation.

As for the vapor barrier, I think the sealer you put on the blocks may suffice, depending on what you use. However, vapor barrier is not something that's used in my area, so I'm not sure about that. Maybe RC or someone with more experience with the use of vapor barriers can advise you on that.

Welcome dogman.
To help you with the vapor barrier I need to know what part of the country your in.

Why are you sealing the block walls with waterproofing?

You mentioned the use of cement board, is this for a bath shower area or are you talking about all the basement walls.

I'm in the mid-Atlantic - Northern Virginia. House was built in 1940. Basement is damp, so I thought a waterproof on the block couldn't hurt. I was thinking cement board for the entire basement because I read that it doesn't attract mold. If my thinking is wrong and you have better suggestions, would appreciate any information you could give me. Thank you so much.
Let me add that the temperature can get down to below freezing for sometimes two or three weeks in the winter and over 90 F fora week or two in the middle of the summer. My house is 6 miles from the White House.

Even though your not in a predominant heating zone for the winter months I think I would be inclined to insulate with Roxul bats if that product is available in your area and cover with a 6 mil poly vapor barrier. http://www.roxul.com/product+guide

As for doing the basement walls in cement board, that would be a difficult and very expensive choice. Finishing the cement board surface is problematic. About the only thing you could do to it is paint it with a masonry approved paint.

Drywall would be much easier to do and less expensive. There are drywall products available that are moisture and mold resistant. Look for this one if possible. It's probably the best one out there for your situation. http://www.gp.com/build/product.aspx?pid=4659

Okay, I'll try that. You gave me some good information and it is really appreciated, both RC and Kman, thank you so much.

RC,I went to the Roxul site and found out that my local Home Depot can special order that product. Thanks again for the advise!