I had a step stool with a rubber tread that smelled like rubber for many months. I tried many things to get rid of the smell. The one solution that worked for me was to put the step stool inside of a garbage bag full of kitty litter. After two weeks of being inside the bag the smell was completely gone. Also the smell never came back. Maybe you could spread some kitty litter on the mat and put plastic on top of the kitty litter. Just a thought!

:) as an old deadhead... Summer Tour was the best shape I've ever been in, between the vegitarian cooking and 3 hours of dancing 4 nights a week ! and I can't dance, have three left feet and an inner ear tht's never sure which way's up... but over the years, I've picked up a style that's taken bits of yoga, Tai Chi, Kung Fu, Kempo, and whatnot (never taken formal classes, but the guys are always trying to show me SOMETHING they just learned from their own teachers) and tribal dances, and it's the perfect break for me from biking, which is a very linear kind of meditation. I don't need videos to dance...my TV isn't big enough to encourage working out in front of it, really... but any live concert recording carry that same feel- and it doesn't matter what kind of music it is- I dance just as well to Porgy and Bess as I do to the Winterlands concert. but- I do own one dance workout tape, have had it for 10 years, and love it. it's called 'world beat workout' and it's where I picked up what few formal 'tribal' steps I know from.

Forgot to answer your other questions... I would go with rubber instead of carpet, you can always resell the rubber mat if needed and would be easier to take up when needed (no carpet tack strips). Shouldn't need to worry about getting water on the rubber mat to where as the carpet would soak through. I would probably have the floor finished no matter what as it helps protect the wood. Plus it will be one less thing you have to deal with when and if you ever take the floor up.

Just a couple of suggestions. Install tile around the wet bar area. Use the same planks as down stairs for the rest but depending on the type of exercise equipment you use be prepared to use mats under it. The natural movement/small vibrations from most types can cause abrasions on many types of flooring. Talk to a flooring person about what type would be best for your situation.