Need some advice to help finish off my basement. First off... A waterproofing company installed their system. When they put this system in they cut and removed (about 24 inches or so) the studs and paneling all the way around. So everything 24" and below.. there is nothing...above the 24" area there is paneling and studs. Tearing out everything and starting from scratch would be the best way to go... but having lost my job, time and money are in short supply. To try to keep the cost down.. I had 2 ideas. First... extend the studs where they were cut off and attach a piece to the side. Second idea...build a short wall and slide it under. Then finish off the bottom half with mold proof drywall. But this way would be a little tougher since the waterproofing company basically took a circular saw and cut a line all the way around without any concern for accuracy. Any ideas or suggestions..?