basement walls and floor

I have a very old house. The previous owners put in a small bedroom in one corner of the basement. They put wood paneling on the walls and put up a suspended ceiling. We wood like to turn the room into an exercise room. The problem is, there has been water in the basement at one time, and the bottom of the paneling is warped. You can't take it off the wall and start over due to the suspended ceiling grid being nailed to the paneling. We don't want to start from scratch. I was wondering if a person could cut the bottom of the paneling off and add new stuff to that area. I was planning on painting the paneling anyway, so don't know if this would be a way to disguise it. The other problem is the floor. It has a few small cracks in it. There was indoor-outdoor carpet there, but with the water damage, we had to tear it out and burn it. I've seen a product advertised called Dura-Coat. Has anyone seen or used it before? It is supposed to dry to a tough coat and not be affected by water, fuel, or acid. Any other ideas would be appreciated.
weze

 

Some ideas:
1) Put molding around the ceiling and cover up the joint between new paneling and the old paneling that you have to leave in place.
2)Depending on how high the damage is, cut off the bad part of the paneling and install new baseboard that covers the damage.
3)Any good floor paint should work. You may want to use a good crack filler or caulk (paintable), depending on your definition of "small"

 

If your going to seal it use Hydro-Seal 75 epoxy. Nothing withstands seepage better than Hydro-Seal 75. Call 1-800-346-5543 for a free sample today.

Rick Bernard

 

Hey,
Thanks for all of the ideas!! They sound great! We've been having soaking rains here in the midwest, so my project will have to come to a screeching halt due to WATER IN THE BASEMENT!! Doggone it! But, I will give both ideas a try. And, thanks again for responding!