The foremost step would be to install the half inch foam padding over your cinderblock walls. Remember that, the foam padding should be pasted gently and carefully, making sure that there is no loose end. Paste the glue at back side of the foam and then place it on the wall. It depends on the type of adhesive you are using; do not touch the foam until it is fixed. Place small marks on the panel after every one and a half feet and then draw a line from top to bottom.
Now you should take the hammer drill to place a furring strip of 1 by 3. Do not forget to drill holes after the distance of two feet. Also keep in mind that the cutting of the panel should be done sharply and straight.
After you have drilled holes in the wall, you should insert drywall screws to combine it.
After placing the sheet, use one screw after every 12 inches. While tightening the screw, you must remember that it should not be lose instead it has to be as tight as possible.
Keep doing the same until the complete cinderblock wall are covered with drywall.