when remodeling a basement with cinder block walls .......???

and about a one inch groove around the perimeter of the basement floor for water to run to the sump pump, can I put the walls up as usual with the bottom board laying part way over the grove in the floor ( I think I should use treated lumber? ) or should the bottom ( base plate) be away from the wall?

View this post on my blog: http://madeinhome.info/when-remodeling-a-basement-with-cinder-block-walls