steve - I know one of the issues w/laminate is the noise issue, since it is a floating floor - Does the $1.60 include pricing for the underlayment? - The concrete slab will need to be leveled or you will have problems w/install and longevity of flooring To me the $3.50 for carpet installed sounds like a better deal - but that is me - I am a somewhat DIY - but I think by the time I got the proper tools and figured out how to do the floor it would be well over the $3.50 ft - Add to that the need for some type of area rug/s following installation - Tools/material/time/mistakes - per sq ft + $1.60 initial product - Even though the basement is "dry" - basements are more likely than any other room to have a moisture problem - I went w/carpet just tacked down so that if I do have any water problems its a relatively easy fix Good luck

I'd do colorful carpet squares wall to wall -- would define a play area (no toys off the rug at end of day!) and the squares are easy to clean and/or replace in case of a stain. Beyond that, just lots of stuff down at short people level -- bins for toys, cushions for lounging, maybe a low bookcase. I like the idea of chalkboard doors, and you could use those lower cupboards for kid stuff too. Probably the higher shelves will need to be for adult stuff for some time yet -- you could put Read Aloud books up there, or wipes or other supplies... A low table for scribbling could be good -- we had one with folding legs that could be stowed if more floor space was needed for other things.

More photos: The first photo shows the art wall I wish to creat. The second photos shows a tent idea to substitute with the canopy idea.

If you have a flood risk in the basement, I'd say something waterproof like tile or terrazzo. For the playroom area, put down a big cheap area rug (like a section of basic carpet that's not nailed down). Then if it floods again or the kids make a gross mess or spill, you can haul the rug out and get it cleaned, and the floor underneath will be unaffected.