First, the cold in the addition. Insulating the floor is a great first step, but you need to find out what they did in the ceiling and walls, and that's going to involve a visual examination. Unfortunately, the lack of insulation under the floor bodes ill. You can often take electrical plates off and have enough room around the box to tell whether or not there is pink insulation in the walls. If there is, you're good to go. If not, you're going to have to consider something like blown in insulation in both ceiling and walls. In addition, you're going to have to figure out how to stop drafts that aren't the result of uninsulated, icy walls. That means finding out where they are and plugging them. Closing off an addition with a bathroom is a very bad idea because of the possibility of allowing pipes to freeze and burst.
You need to find out where the water is entering the basement. The fix is digging down the outside of the foundation and waterproofing it plus making sure the ground slopes away from the house. Any leaking gutters need to be replaced. The drain is a good deal, but constant water coming through the foundation is not. Fix that puppy before it weakens your foundation. You certainly have no way to finish that basement until the problem is solved.
Fire barrels are nice, but carbon monoxide poisoning is not. Keep them outside.
You might consider installing a wood stove for supplementary heat on the coldest days.
One suggestion for supplementary heating is the Econoheater:
http://www.eheat.com/ Just make sure your electrical service can handle as many panels as you might need in basement and addition bathroom.