As for thewater issue - Iagree with theabove advice. You need to find out where it's coming from, and re-direct it.
I finished off my basement onl yto have the same problem. I knew it was a potential, and drylocked all the walls twice. I even built in a little aluminum channel in behind the base of my walls (I put in full stud eterior walsl etc) to "catch" water and funnel it to the garage.
Gues what... still flooded. many hours with teh shop vac, and much profanity.
When there's enough water and pressure, it will find a way. I ended up just sitting and watching, staying up real late many nights during very hard rains to investigate... eventually I found where it was pooling around the foundation and had made a hole. This past spring, I dumped many bags of dirt tehre nd re-graded.... no flooding yet...
Here's the other risk. If you just drylock on the inside, that basically forces all the water to back up behind the wall. Just liek the cartoon on the can, in fact. Now *in theory* the rai nwil lstop, and it will seep away. However... what if it dosn't, liek if you have a big sinkhole behind the wall? That's a whole lot of hydrostatic pressure that will build up... and remember, it's still soaking the body of the cynderblock, just not 1 side of it. With enough time it can crack, then all taht pressure has to release.
A neighbor of one my buddies had this happen... and the wall essentially collapsed. Major, major damage.
