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Like I said, moisture-resistant paint is the way to go. But honestly, I'd check first where the moisture is coming from - if it's seeping in from outside, no paint's gonna help you, you need proper sealing first. If it's more condensation, then yeah, special paint on it, but sand it down thoroughly and let it dry first. Otherwise the stuff's just gonna peel off on you.
I had the same problem in my basement and got pretty good results with it - just use a special moisture-protection paint, you can get it at any hardware store. The important thing is that you clean and dry the walls properly beforehand, otherwise nothing will stick. I'd do a primer coat and then two topcoats, worked great for me. If it's really damp, maybe look into drainage or something like that too, because paint alone doesn't always help in the long run.
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