We had one installed and it was partially successful.
Perimeter drains are a channel that is glued to the wall/floor junction. Holes are drilled in the cavities of the concrete blocks to shunt the water to the channel. Water will flow through that channel to whatever is the lowest point of the basement, where some other conduits drain the water into a sump pump crock or into a drain to the storm sewers (if you have the proper elevation and all). You can buy these drains and install them yourself or pay for the whole project. An installer will break away the floor near the wall to set the drain down lower.
I say ours was partially successful, because for some reason water wicks right up to points in the center of our basement floor.
I don't think you will get good results digging up outside and trying to waterproof the wall. There will likely be a gap somewhere. That would be a lot of work for an unknown result.
Before you do any digging or installing a perimeter drain, I would recommend an assessment of the surface water at your house.
Figure out where the rain spouts go (like Warpy said). Replumb them into the storm sewers or put in diverters that take the water 8 or more feet from the foundation.
Make sure the soil near the house slopes away from the house. Some homeowners even flash the soil near the house with a rubber sheet, then cover it with soil for grass.
You should have grass near the foundation to take up and transpire the water. No rock garden
I suppose you could put in shallower French drains near the foundation wall--especially if you have an area hemmed in by a driveway or a sidewalk and there is nowhere for the water to flow away from the house. Look into "geotextile and sand" such as Akwadrain.
http://www.americanwick.com/applications/detail.cfm?app_id=7&app_cat_id=3