Waterproofing a basement?

I have cinderblock walls in my basement that have some nail holes in them where studs were nailed to the wall. When it rains, these holes let a small bit of water in. I plan on using
drylock on the walls, but should I fill in the holes first? If so, with what? Hydraulic cement? Caulk? Any and all help would be appreciated, the wife wants it done this weekend (or else)!

View this post on my blog: http://madeinhome.info/waterproofing-a-basement-2