basement insulation question

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When you say "covered with drywall" does that include wood panelling, or does it specifically need drywall? I have a similar project like this on the back burner.
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Buck Turgidson wrote:

Must be drywall. Drywall is very fire retardant, wood paneling is not.
--
Joseph Meehan

26 + 6 = 1 It's Irish Math
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It has to have a fire rated covering, wood paneling does not do this.
!/2 inch plasterboard or similar material meets the requirement for residential usage
Rich

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I believe those foam panels are very flamable and code requires that they be covered and not left exposed.

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You believe wrong. Yes, they must be covered for code, but they will not burn unless thee is another source of ignition. Much less likely to burn that paper, cardboard, vinyl paneling, etc. Please see my other post on this.
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Obviously.... I was not suggesting spontaneous combustion.
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Don't forget to caulk the gap between the sill plate and foundation wall. It is a major source of infiltration
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