Spray the wall with a power washer to clean it. Allow it to dry overnight.
Patch cracks in the wall by chiseling away at the area around the crack until you get to the bottom of the crack, then fill it with patching compound. Smooth the patching compound with a putty knife, and allow it to dry for the time specified on the packaging.
Patch the cracks at the bottom of the wall where it meets the floor. Run a thick bead of urethane caulk over the crack if it's a quarter-inch wide or smaller. If it's larger, insert the foam backer rod into the crack, then apply the urethane caulk. Smooth the surface of the caulk. If you have a floating slab basement, which contains a trench around the entire floor, do not patch this trench.
Cover the walls with a waterproofing agent. Apply the waterproofer to one block at a time with a paint brush, spreading the waterproofer in every direction to ensure complete coverage. Let the first coat dry, then add a second coat.