Insulating Basement Wall with Gap

I'm insulating my basement walls with R-19 unfaced fiberglass in 2x4 wood frames. I'll be adding a vapor barrier afterward. In one area of my basement I must have a gap of about 8 inches between my framed wall and the poured concrete. Should I still insulate that area?
Also, I'm not planning on insulating one of the exterior basement walls at all because it's part of an unfinished storage area. So, there's a partition wall that separates the unfinished space that's about 6 feet from the exterior poured wall. Should I bother insulating that partition wall? Does it need a vapor barrier?
Opinions apprecaited! Thanks.
Kevin
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snipped-for-privacy@blah.com wrote:

if the area gets moist at all fibergalss is a poor choice, since when even a little moist its insulating value drops a lot.
foam in place will cost more but do a much better job.
fill the 8 inch space and defineely insulate all heated spaces
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