We are looking at finishing our basement on a budget. The floor is currently concrete and without leaks, but has cracks. We tossed the idea of polishing & sealing it, and proper tile is out as well. I joked about putting down floating laminate flooring like I had done for our church parsonage, when I stumbled across floating vinyl tile flooring.
http://www.lumberliquidators.com/ll/c/Black-Mountain-Maple-Click-Resilient-Vinyl-Tranquility-4MM/10023436#pr-header-4MM
I have also seen individual locking tiles, but can't seem to find them online right now. I have installed both floating and staple down wood flooring, but I know that I don't want either in the basement just in case there is ever a water problem. I was thinking of using a foam underlay with built-in moisture barrier (like so http://www.amazon.com/Roberts-70-025-Underlayment-Laminate-Moisture/dp/B001CXYYVA/ref=sr_1_1?s=hi&ie=UTF8&qid=1368714099&sr=1-1&keywords=underlayment+for+concrete)
I've got roughly 1,000 square feet to cover, so it won't be cheap, but the money I save on installation will pay for having a real contractor finish the concrete block walls properly (I hate, hate, HATE, hate sheetrock work, hate it, haaaaate it). That is unless anyone has a better idea for dealing with concrete block walls.
We had to ditch the finished ceiling idea, so we'll just paint it again (a previous owner spray painted the open basement ceiling white). We'll leave the ducts exposed and get nice lights installed (contractor again, I don't do sparky work).
The idea currently is to move the living room to the basement, move the dining area into the old living room, and expand the kitchen into the old dining room area. We would convert the basement water closet into a half-bath with stand up shower (contracted so it looks nice), and convert my basement office into a bedroom so the kids can have their own rooms upstairs (small house, 2 bedroom, one bath).
Why bother with all this work to make a tiny house work for a family of four? Because it has a detached three car garage tall enough for a four-post lift. Priorities man, priorities...