Check with your local building department for ceiling height code.
Do not, DO NOT make your basement into living space until you are absolutely sure there is not mold or bacteria growth present. It is too common that home owners erect walls and trap mold behind them, then subject their family members to mold. Then, they wonder why their children have asthma.
If you do decide to make your basement into a living area, you SHOULD have air exchanged down there. This does NOT mean circulated, it means replaced. Basement air is poor and needs to be exchanged.
Be careful what products you use down there. Stay away from synthetic carpets and adhesives. They both contain chemicals that leech out into the air.
Most importantly, you must have two safe exit ways in case of fire. Typical basement windows are not meant to be opened and are difficult for children to reach.
Always consider safety.[email protected]