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Do not paint over or frame over the walls unless you are certain they are and will stay dry. Framing and insulating some interior partition walls to make a room is OK.
Do a bit more shopping for wall covering ideas-maybe some cheap paintings or tapestries??
You can buy styrofoam insulation panels for the ceiling. They are light and easy to nail up: that will look better and keep the fiberglass and dirt from drifting down.
I think you are on the right track with reconsidering laminate...I would just get some big area rugs-maybe on CL?
You didn't mention electrical: be careful and well educated there.
Sounds like a fun project-let us know how it turns out!
Thanks QIS! I guess no one can ever be CERTAIN it will stay dry. The house is 15 years old and we have lived here for 2 and have never seen even a bit of dampness on the walls. But you really never know I guess.
But why would painting over them be a problem? I understand you wouldn't want to frame over damp walls, but with painting they are still accessible and exposed to the air, right?
And yes, putting a rug or some cheap carpet down there is definitely an option.
A few have questioned me about not doing "enough" but I can't stress enough... I plan to finish it in 4-5 years so what I'm doing now is mean to be temporary and easy to remove once I'm ready, and I think I can make it into a decent space with just a few hundred bucks to put in a temporary wall and cheap floor. My sister uses her basement as a place for her husband and kids to play video games, but they did nothing to it other than move a couch and TV down there and it's a pretty sad looking area to hang out in, so I'm just looking to add a little bit of a "room" feel to it.
I once used some sort of stucco/popcorn paint (very rough texture) to paint some basement concrete walls. It covered all sins and was going strong 10 years later. Was messy to apply but not costly.
If you are using laminate flooring, be sure to use a good underlayment under it. Kills sound and creates a moisture barrier. Also, make sure that you leave expansion space around the perimeter of each area that gets the laminates. 1/4" - 1/2" is usually enough, but consult the mfr. of your flooring. YMMV. Then you'll need to use a baseboard to cover that space. At the very least, you'll need a shoe molding or quarter-round.
Thanks for the mineral wool tip and other info above.
In my house I inherited a half-ass basement finish from some former owner: about two-thirds of the space is 'finished', meaning enclosed in 2x3 (not 2x4, 2x3 -- cheapskate!) framing, which at least does appear to be securely attached to the concrete. Facing the finished room, the framing has plywood panelling attached. Facing into the laundry room and mechanical room, it's open.
I've been meaning to close off the laundry/mech side with some additional panelling (I'm dubious the framing is even and true enough for drywall -- the plywood visibly bends here and there to accomodate). Given what stays warm/cold there's no good reason to insulate those walls for energy purposes, but the points about accoustic insulation, fire, and avoiding air pockets inside the walls make sense, I'll look into the mineral wool.
On the other hand, better to just leave the walls one-sided to avoid trapped moist air issues? My intent was largely aesthetic, but also I figured it wouldn't hurt to have more of a fireblock than one sheet of plywood!
FYI, we replaced carpeting in the finished section with vinyl planks and have been very happy. That's out of the price range for the original poster, but for what it's worth the vinyl looks good, is easy to clean and is waterproof, and has just that little bit more 'give' than concrete which makes a real difference in comfort on it.
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