What was the condition of the concrete...water stains or white chalky stuff on the wall.
Any moisture on the old sheetrock, or mold ,black stains on the wood.
This depends on how you want to tackle the issues.
Cheaper is not always the solution.
If I where to do a basement, I use metal studs. Nailed to the floor and the ceiling. With tongue and grove rigid foam insulation board glued to the concrete wall.
Then you can do what you want...and its less expensive than wood.
Let 's figure this one out everybody...and post a boilerplate solution.