I don't know anything about this system, but I do know that there are certainly ways to mold/mildew proof a "real" finished basement.
When we finished ours a few years ago, we first used a really good primer on the brick. After the exterior walls were framed, we packed the studs full of insulation. Over the insulation went tons of plastic and duct tape, then drywall.
If you have moisture problems in your basement, you could use drywall/cement board meant for bathrooms, but it shouldn't really be necessary with the insulation and plastic lining.
The whole project cost $20,000, but we also added a bathroom ($7,000), had to have the cement floor dug out and re-poured ($5,000), and had the whole house re-wired in the process.