I also in the process of designing a basement Theater. I using most of my old stuff, Three Hereseys across the from, the center is a Pro-Heresey and KG-1s in the rear. I have a Sony Projection (CRT) with a 8 foot screen. I plan on recessing the screen into the wall. The room is a place for me to escape to. I'll probably listen to more music than watching movies.
At this point, I plan to leave the ceiling open (joist showing) and paint in flat black. Even though I have a 7'10 basement I want that extra height. I thinking of a sound deadner between the joists ( any suggestion would help) For the walls.....well I like the carpet Idea. I think I could achieve what I need for relativley low cost. Would the carpet be continuous or would it stager, leaving sections of hard wall open?
I plan on carpeting the floor with mildew resistent pad. I don't plan on laying on the floor but I still like to cushy feel.
Are you leaving the rear wall Hard, or are you covering that too? My rear wall will not be flat, 1/3 of it will be steps, the other 2/3 is inset about 6-8 ft and has a 36 inch door to one side.
I just purchased a City Water Sump Pump Slave. Used only when we lose power, it works off the city water. It pumps 1 gallon of water to two gallons of city water used. Just as a safety device and a piece of mind.
Good Luck with your project.