Clear out any clutter, such as boxes of household or seasonal items, stacks of books or magazines -- anything that is just taking up space. Move items to the garage, donate to charity, sell them at a garage sale, give them or throw them away or put them into a storage unit. Empty your space of all non-essential items that won't be used in the area you are improving. Clean floors, walls, windows, ceilings and corners of dirt, dust and cobwebs.
Lay down drop cloths and paint the walls and ceiling a light color. Let the paint dry thoroughly before continuing.
Install a large hanging lamp in the corner with the least light. Place an area rug under the lamp and set a reading chair with a small bookcase or magazine rack on the rug.
In another corner of the basement, place another area rug with a large floor lamp and large floor pillows with a TV or stereo.
Place a large area rug in the middle of the basement area with a large floor lamp and a table, hutch, credenza or other available furniture item. Set silk plants on the table.
Hang patterned fabric on one of the walls from ceiling to floor, or use it as a ceiling cover if there are exposed rafters.