I framed mine out as a rectangle (like a sofit) with 2x2s & sheetrocked around it using 4 metal corner beads. Then I did regular baseboard molding at the floor. I think it looks really good with the style of my house & it's held up fine for 10 years. Columns would have been out of place with the contemporary style of my house. As I recall, I built 2- 2x2 boxes, nailed them off floor & ceiling & rocked around them.

Hard to tell exactly what you want to do. You might as well finish it. If your walls are straight you can put furring strips up with drywall and a drop ceiling. Probably the cheapest and an easier way to go.

Yup, be careful. If you try to use a crowbar, those things can snap and shoot off anywhere. Use at your own risk, but here's one idea: cut the wood through on both sides of each fastener to remove the wall in pieces. (the remaining short piece of wood on the floor will now split easily). Then put a heavy old rag (old towel, doubled over) over the fastener (to catch it when it snaps) and hit the fastener (through the towel) with a small sledgehammer - this will likely snap it at the base, and the towel should keep it from flying off somewhere. Eye protection is a must, no matter what.

I saw something like Panel Track on the Ikea web site. It was something that started with a K. I don't have an Ikea where I live, but there is one near my brother in Atlanta. I need to get some more information on the clearance/depth of the track. That window/door in the picture looks exactly like mine! Thanks, dilly. I see that Lowes also has the patio door blinds like HD (thanks, charlieinnj), so I might check them out this weekend. That is a bit more than I wanted to spend, but long term might be the best option. I haven't quizzed dh on his preference yet. Now that I have some options, I'll see what he thinks. With the pool table and wii we're getting the kids for Christmas, the basement may turn into the 'man cave'.