Personally, I like a drop ceiling in the basement for easy access to plumbing and electrical wiring. (But thats my taste). You dont even have to put it down, but a few inches, or even screw up the panels to the floor joists, so that you can gain access to various stuff.
Insulate the walls with one inch styrofoam, or, if you really have the room, build up the walls with 2X4 studs and put in R-13... (but, have the 2X4s a half inch away from the walls, unless they are treated, and have a pressure treated sill plate for the 2X4s to sit on).
Either paint the floors, or indoor-outdoor carpeting for some warmth, (at least to keep the cold off your feet). You wouldnt want to put down "good carpeting", until you make sure that no moisture is coming from the ground, through the basement floor.. and you can do that, by testing areas...
Simply take 4 mil plastic, (12"X12"), and duct tape them down in a dozen places or more, for 24 hour period. (I would perfer to do it when its raining outside, to really draw the moisture through, if it is).
(Note: Having a cap on the chimney can prevent some moiture from seeping below the floor, as a lot of rain comes down that chimney, just put out a 5 gallon bucket and see how much moisture is captured!).
But, before I would put anything like walls on the basement, like a built up wall frame, I would want to paint the entire basement with dri-lock (have plenty of FORCED VENTILATION for this, as it has a LOT of volitile organic compounds, and extinguish any open flames, like furnace and hot water tanks, for the fumes). wear rubber gloves also, and old clothes.
(This is only my opinion, and maybe a few bucks more, but, as you get older and wiser, you learn to do it 'right' then have to do it over and over again, because you tried to do it "on the cheap"... Nothing is EVER cheap, when you have to do it over and over again!...But, try telling this to the younger generation...)
OH, make SURE you plug up BASEMENT DRAINS, if your going to put carpet down!! Get those metal plugs with rubber bushings and a screw down lid, that forces the rubber out against the sides, so that you dont have sewer gas coming back up, when the basement drains go dry! (I had lots of people forget this and be overcomed by sewer gas from the basement when I was an operator at the local sewage treatment plant).
4' shop lights for the lighting, will give you all the lighting you need. put them up in the joists so you dont bump heads and even put in frosted frames on the rafters so that you dont get too much of a glare.
Ok, my two cents for what its worth, and a wee bit extra for the collection plate.