Okay, back to basics. A damp wall will loosen off any normal adhesive you use to tile with, or soak into plasterboard that you dot and dab. The trick is to stop the damp coming through, so you either use the hardibacker/Aquapanel type board to seal the wall, but this will create damp air behind the boards. By using blackjack DPM (google it), or the dryzone system, is that the moisture is forced to evaporate to the outside of the wall. Having put the Blackjack on, you can then safely batten the wall (as adhesive may not stick well to it), and then use plasterboard - which works out pretty cheaply, and to be honest, stainless steel screws aren't really necessary, just an added precaution. I'd only use the adhesive and screw method on a drywall, not a damp one, as the primer isn't going to stop the damp coming through.