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A common cause of separation between a wall and the ceiling is truss lift—this can happen to the ceiling of rooms directly under the attic when the seasons change and wood building materials dry out, shrink, and shift. Roof trusses often dry out at different speeds, and if the bottom pieces dry out faster than the top pieces, they can shrink and pull the attached drywall away from ceilings and walls, causing cracks. Fortunately, truss lift is only a cosmetic problem, not a structural problem, and you can fix it by separating the ceiling drywall from the roof trusses, and patching the cracks.

Yes, it matters which side of drywall you use. One side is smooth, and the other is rough. The smooth side should be facing outward, toward the room, while the rough side should be hidden and facing the studs and framing of the house. The smooth side will be easier to apply tape, joint compound, and, later, paint to.

When choosing materials for finishing basement walls, consider factors such as moisture resistance, durability, and fire resistance. Opt for materials specifically designed for basement environments, like moisture-resistant drywall or cement board. Insulation with vapor barriers can help regulate temperature and prevent condensation. Consider using mold-resistant paints or coatings. 

Research and consult with experts to select materials that are suitable for your specific basement conditions and intended use. Prioritize quality and compatibility to achieve long-lasting and aesthetically pleasing results.

Technically speaking, you can use drywall primer over plasters. However, oil-based primers work the most effectively on wall plasters. Meanwhile, water-based primers work just as well with drywalls. Nowadays, there are also universal primers suitable for drywall and plaster. Overall, you will be fine as long as you are using a trustworthy brand.