Stone veneer can be used in a lot of different ways and has a significant visual impact for a relatively small price. The look of stone can take just about any plain surface and give it an upgraded and upscale look.
STEP 1) Pick Your Veneer
Fieldstone, Ledgestone, Riverstone...There are a lot of options and each will give you a very different look. Remember that you want to pick a veneer that will compliment your home, not look out of place.
STEP 2) Clean the Cement Foundation Wall
Depending on how dirty the cement is, you may be able to just use water and a scrub brush. However, if the foundation has had a sealant added you will need to use a power washer to prep it for the mortar. The stone veneer will stick best to a clean wall.
Some experts recommend adding a scratch coat of mortar and allowing that to dry for 24-48 hours before adding the veneer to your foundation. Make sure that you choose a mortar appropriate for stone veneer, and follow the directions closely then preparing your mix. As always, do not be afraid to ask a professional for some assistance if you're unsure about any part of this process!
STEP 4) Add the Stone Veneer
Often the most simple way to do this is to start at a bottom corner and work your way horizontally across the surface. keep a stick handy to help you maneuver the stones once you've place them- you don't want to get mortar on your hands. Once your stones have been set for about 30 minutes, go back and press them into the wall again to make sure they're setting properly.
STEP 5) The unadvertised step.... Enjoy your handy-work!
For more information about how to add stone veneer to your cement foundation wall check out ehow or this SFGate tutorial.