How often is "sometimes damp" and how much water are we talking about?

Are you implying that the sump pump is constantly pumping water away or just after rains?

I'll defer to the real pros but I'd be hesitant to finish the floor. If its indeed that damp, sealing the floor won't last long. You'll have problems with tiles sticking long term. A subfloor, using pt wood would be better, but if its reaaly dmap then mold/mildew could be a real problem.

I know you (probably your wife)really wants this done. But you asking for constant headaches until you solve the moisture issues.

he sump goes on every 15 minutes due to a high water table. I say the floor is damp only because pail left on the floor will leave a damp round spot. But a plastic sheet taped to the floor does not always leave water drops inside. It could just be the floor attracting the moiture as apposed to moisture coming up from below. But a few small hyrostatic cracks will show a small moist presence.

I have similar problems, not a wet basement but kind of scared that water may come. Here is what I'm doing: I'm raising the floor using 2" metal beams. Lay down the beams just like you would with wood then cover with a 4 mil plastic and attach your flooring i.e. plywood. This way if a little water comes in it will be under your floor. I was told that mildew wouldn't be a problem as long as you use the vapor barrier.

Drylock paint is not made for floors. It has a warning on the label stating so. The warning specifically states "DO NOT USE ON FLOORS, even if floor will be carpeted, tiled or painted. Drylock Masonry Waterproofer is not formulated to withstand foot traffic." (Emphaiss in original) (I have a can of the Oil Based Drylock in front of me from which I am reading.)

That said, I have used it for floors (e.g., in an intake plenum and under kitchen cabinets--both with no foot traffic), and I have friends who have used it for floors when they have covered the Drylock with, say, builders felt, plastic sheeting, and then wood floors. The warning might just be there to clarify for legal purposes that the waterproofing guarantee does not apply to floors, but it does specifically say "even if" covered, meaning that even indirect foot traffic might be a problem.

You should also clarify whether the dampness is from the subsurface (coming up from below because you are below or close to the water table) or from stuff in the basement (combination of sump pump, washer/dryer, inadequate ventilation, etc.). Doing so will almost answer your own question on whether you even need some sort of water proofing layer. Indeed, you might NOT want to waterproof the floor because doing so will trap water and prevent it from draining via gravity. (Depends largely on your elevation and the water table level). Remember, water will usually "want" to drain through the floor even in a damp basement due to gravity.

Also, ventillation and dehumidification often solves the problems of a damp basement so that you don't need to worry about the flooring material. Then you also don't need to deal with a damp basement, as well.

Well it has been a few months and this is where things stand; The walls and crease (joint between floor and wall) have been treated with hydrolic cement. Then painted in Dryloc. The cracks on the floor have been gouged to eliminate particles and filled with either cement caulking or Druloc paint. The new utility room is shaping up with studs, vapor barrier sheet and then drywall. The utility room (8x20) floor has been covered in DRiCore panels and then quater inch EXt grade plywood. No other official flooring has been done other than foam panels used for utility and playrooms. My playroom! The rest of the basement has some sort of thick coating that is not present in the utility room area. So that floor will get VCT tiles later in the year. More damp proofing needs to be done as when the rains came, some spots ocurred. A dehumidifier would work but I also have two fish tanks and a temporary barrel of live rock for the third tank. Over 200 gallons of watter and they evaprorate enought already!