Basement floor help..!!

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I just bought my first house about a year ago,
and i would like to turn the basement into a rec room
and living space..But i`m having trouble figuring out
what to do about a floor, I only have about 7` between
the basement floor and the floor joists, and i want to
lose as little head room as possible, Now i`m new to
all this do it your self stuff and i have no idea what
to do, i think i should have a sub floor( i think that
is what you call it) but how to go about it, well thats
where i`m stuck...I want to keep the cold from comming
up from the concrete, so would i use 2x4 framing with
insulation in between and top it with plywood or
something else.??? Any help would be apprecaited,
Like i said, i`m new to all this and with a
little help i just might be able to get this done
without having to pay someone to do it for me...
Thanks for listening to me babble on...