We decided to install some carpet that came to us free. We unrolled it and found out it was bright white. Some internet searching told us that some had luck gluing carpets in basements, so we tried that.
We got the carpet down, but it has a bubble and a couple of wrinkles. The carpet had been sitting in someone's garage for about a dozen years and wasn't level. I think it might have gotten some creases in it. In hindsight we probably could have let it lay flat for a while before we glued it down, to help get rid of the wrinkles. However, for not having any special carpet laying tools, I think we did okay. We spent 12 dollars on the glue, nothing on the carpet, and just put a few hours in labor.
After we got it glued down, we went to Lowe's and bought baseboards. Hopefully those will all be done by the end of the weekend.
I also did some work on the window, and cut some drywall and plastered that to finish it up. I need to paint it yet. Earlier this week I put up the track lighting. The room is definitely looking much brighter. It was dark wood paneling before.
Here is a short video tour I made of the room: