In the past, many homes were built with unfinished basements 
and the homeowner used those dark, bare, usually damp spaces 
for storage, laundry, or large collections of spider webs and 
dust bunnies. You may have bought one yourself and now, with 
the high price of new housing, you are looking to expand your 
current house to meet your family's needs (do your covenants 
really allow 10 story ranch houses?). That unused basement 
seems be the answer!

Want to do it yourself? I suggest you begin by evicting the 
dust bunnies! Next, we need to finish the basement walls. Easy, 
right? Just slap up some drywall and tape! Wrong. Here's how 
to do it correctly:

1. Look at the amount of moisture in your basement. Are the 
   walls moist? Are there mushrooms growing in the corner? Is  
   there standing water in any part of the area? (If you make  
   the kids wear lifejackets when they go downstairs, you may  
   have a water problem). You should call a professional for  
   ideas on how to get rid of water seepage. It will be money  
   well spent and will prevent many problems later. 

2. Estimate the amount of drywall and furring strips (long,  
   thin wood strips which enable you to attach the drywall to  
   the concrete face) you will need.  For every 4 feet of wall,  
   you will need one sheet of drywall (we are assuming that  
   your ceiling is less than 8 feet!) and 4 furring strips.

3. Screw the furring strips to the wall leaving a space of  
   approximately ½ inch from the bottom of the strip to the  
   floor in case water seeps in. Make sure the strips are  
   plumb (use your handy-dandy level) and drill holes about  
   16 inches apart into the wall (use a masonry bit). Drive  
   in hardened concrete screws with your even-handier-dandy  
   drill.

4. Shim the furring strips to create a flat plane for the dry  
   wall. (Is this the point where the author makes a bad pun  
   about doing the shimmy?) Start with the strip nearest the  
   corner and use a long level to see if it's plumb. Use a  
   shim, if needed, to bring it level. Repeat the process to  
   make certain all the strips are plumb with the first. 

5. Add insulation and a vapor barrier. Both are available at  
   your local home improvement store. Placing insulation panels  
   between the strips increases the R-value of the basement.  
   The R-value measures the basement's resistance to heat loss.  
   All you have to do is cut the insulation panel to size and  
   press it between the strips. The plastic vapor barrier will  
   help minimize moisture penetration. Staple the barrier to  
   the strips, but try not to get overly enthusiastic with the  
   stapler and breaking the surface of the barrier. The more  
   holes are in the barrier, the more moisture will penetrate.

6. Cut the drywall. Drywall should also be placed ½ in off  
   the floor in case the floor gets wet. Use a straightedge or  
   a T-square to mark the cut line on the drywall face. If you  
   don't have a straightedge or a T-square, use the edge of a  
   furring strip. Drywall is easy to cut using a utility knife.  
   Just cut through the paper facing. The piece to be cut off  
   is then snapped toward the back of the panel. You can then  
   cut through the paper backing with the utility knife. Easy,  
   huh?

7. Screw the drywall to the furring strips.  The best way to  
   measure where you need to screw is to snap a chalk line  
   along the drywall at each furring strip (do you remember  
   how far apart you placed them?) Use 1 ¼ inch drywall screws  
   and be careful not to screw so deep that you break the  
   surface of the face paper. 

8. Finishing the wall. Ok, now for a bit of artistry! You can  
   make the wall look really good - or really, really bad!  
   Apply a layer of drywall compound in the cracks between the  
   dry wall sheets. The layer should be about 3 inches wide,  
   more or less. Then apply a strip of drywall tape and apply  
   another thin layer of compound over the tape. Then fill in  
   all the screw holes with compound. Try to make the surface  
   and smooth as possible (easier said than done!).  After the  
   first layer dries (usually 24-36 hours,) scrape off any  
   uneven ridges or lumps and apply a thin layer of compound  
   with a wide putty knife. Sand smooth and you are ready paint!

You now have a blank palette ready for a wide range of 
decorating options: bedroom, play room, den, family room,  game 
room, bonus room, office, gym, workshop or bowling  alley. The 
choice is yours!  The style is yours! Have fun!