We have a old house built in the 30's and the basement was painted at least twice by the previous owner sometime in the 50's or 60's. 2 years ago we had the basement water proofed which has eliminated 99% of the moisture in the basement. At this point I would say about 95% of the paint on the walls and floor are intact and the other 5% is either flaking or has been worn off the floor. My wife would like to paint or at least do something so it doesn't look like a dungeon and kids can safely play in the basement. From what I see I have several options, ideally I would like to paint it a lighter color. I can use a product like drylock which would help with any moisture left in the basement but I am worried that many people say not to use it as it locks the moisture in the concrete walls and eventually destroy the walls. All though this may not be an issue as I know there is no tar on the outside of our foundation walls. I can use a latex paint but I am worried it will not stick properly to the walls and old paint. Or I can sc**** off the old paint which seems to be the worst option as it will either create a large amount of dust which is probably lead paint or create a large amount of chemical vapors both of which would be very bad for my 3 young children in the house.