From what I've read (no practical experience myself) the best way is to build a partition wall away from the existing wall so that there is no physical contact between the two, then add two layers of acoustic plasterboard. If you just batten out the existing wall you get sound transmission through the battens. You would loose about 6 " inches overall.
If you can't afford the space and it's just talking/TV that's the problem perhaps take a look at systems like this..
http://www.soundservice.co.uk/wall_sound_proofing_Help.htmor
http://www.domesticsoundproofing.co.uk/soundproofing/acoustic_wall_panels.htm..but as they point out this won't solve problems with loud music or bass sounds.
It's possible for sound to travel through the floor joists or holes in the wall under the floor so floors may need to be lifted and sound insulation added before the wall is done.