Allan - we updated our finished basement a few years ago. Ripped out the carpeting as part of it. If the basement is below grade you definitely want an engineered wood product. The contractor doing ours installed a moisture barrier/elevated subfloor first - a modular product (from Home Depot, I believe...mighta been Dri Core or something much like it). An engineered wood product (locking tongue and groove) went down over that. Large area rugs and GIK acoustic panels definitely needed afterwards to tame brightness (as expected) but the room acoustics now are just right...not too bright, not too dead. The system is posted if that is any help. Good luck.
