Insulating with perlite

With one little warning, some construction and panel adhesives are not compatable with foams and will eat them. the label will clearly identify it it's OK. Other than that it's similar to installing paneling. Glue it generously, then stick it to the wall. You will need some way to press it tight to the wall until it sets. I helped a female buddy of mine get started on her basement walls with this same project. We rigged a few 2x4 props to keep the sheets stuck to the wall until they set.

I did the outside of mine.

I covered the foundation walls with tar paint, and stuck the foam boards to the tar. The day before the site-work contractors showed up to install the french-drain and back-fill.

I would fill with perlite or vermiculite and then put two inches of foam on the outside under some sort of siding. Which essentially makes no sense because it would be cheaper to put up a frame house unless you get block for nothing and have lots of time.. Or you could stucco over the foam with "that stuff" ( Brain cramp Ill get back with a name)
IF you pour vermiculite or perlite make sure you have the ALL holes plugged around outlets and such. That stuff will run out of small cracks or holes

If you pour a bond beam around the top course to hold the roof, you don't need to pour the cores of the block with mortor or cement. Just use wire every third or fourth course.

If you plan on having a deep block foundation or basement then don't backfill with anything but stone. two -three feet wide. Other wise you risk pushing in the wall over time form the pressure of the dirt from settling

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Do yourself a favor and leave the vermiculite in the mines.

The asbestos hazard is not worth the risk. In 15 years it will be impossible to sell a house without a hazardous substances report, and your vermiculite insulation will be on it.

Don't use it, it will cost you hugely in the long run.

Pete

Well that's good enough for me. Ya'll made a convincing argument. I've scrapped the block house idea. I'm going to go with cob instead. The land I have is perfect for cob and adobe. I don't need to add anything but straw. Dig up dirt, add water and straw then go play in the mud for a while sounds like a nice way to spend my time. If the other party to the project gives me much trouble I'll grab an ocotillo cane and chase him around for a while...lol. Thanks ya'll!!