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put the studds on the flat..alittle pl400 on the back of the studds an a nail here an there will keep them in place for a very long time...plus u can get foam insulation 1" thick 2' wide by 8' long ,,cheap..put the studds 2' apart, saving u to buy less studds and putting them 16" on center....then rock the walls...my office / rod room is like 12x 16, an all I have is one 3' pc, of elect base brd. which keeps the room at 60 year round,,, if your basement is all below ground it should take less to heat it once all the walls an objects in the room are brought up to temp
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