IM in the middle of redoing a bedroom in the house with Fanfold. Its insulation put on before siding on your hosue is put up.
1/2" is what im using but you can go thicker. But best is to put the fanfold up on the concreat, build a wall and then drywall it. This will help 100 times better on heat.
http://www.discconnect.com/FoamFly/Photos/fan-fold.jpg
Lowes sells it and its moisture resistant and mold resistant. I would also recommend doing the ceiling of that room as well to hold the heat in that room better rather going to the above floor.
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