setting up a listening room in unfinished basement

anybody do this , if so how did you go about doing it?
as far as wall treatments and equipment placements..

how was the sound?
Start by investigating the Cardas and Echo Busters websites. The Rives Audio website has some suggestions and tools to use as well.
You situation is similar to mine. This should be helpful! Some of the best money spent goes into the room, not on the rack.
I did what you are thinking. Do not waste your $ on fancy sound panels. I used old rugs (on the floor, walls and ceiling. You can also find on the net sources for foam sound panels for little money. I think I paid $80 plus shipping for (4) 4ftx4ft panels. BTW they work well. It may not look great but the sound was very nice. Experiement with overstuffed furniture also.
Good luck