Wall Insulation

Probably far more important to cover them than to insulate behind the cover . What are your intentions ?

Good luck.

I'd insulate them in addition to what the coverings previously mentioned. I agree with you also about the ceiling and since the insulators will already be out there to do the ceiling, the walls shouldn't be much more of an expense.

For drywall, I'd use the drywall used in showers to preclude any moisture invasion or damage.

Check your building codes, too. Insulation and a vapor barrior may be required.

Lots of info about the acoustical side of your question here:

Room Acoustics forum at Audioasylum

Even though your basement is dry I still suggest the mold resistant (Fiberglass instead of paper) sheet rock available at Home Depot. It meets all code for both regular sheetrock and for green sheetrock used in a shower.

Yes, you should insulate as noise does transfer upward, inside the walls, too.

Also, there are acoustic caulking tubes available and you should use this perhaps at all corners and certainly at base of sheetrock, behind the baseboard.

If that is your intention ie. insulation and a covering , then use rubber strips or a non hardening caulk (silicone ?) between the studs and the sheetrock no matter what type of sheetrock , vapor barrier and insulation that you use . The object is to stop the sound transmission through the material . This is especially important in the ceiling with your application .

I would suggest using styrofoam insulation . You can get various sizes and thickness's at Home Depot , it won't hold water like fiberglass or some other forms of insulation , it is a denser material that works better for sound transmission abatement and you get a higher insulating value per inch .

Good luck.