Go to thread "lets see pics of gamerooms" there are 26 pages of examples. That is a start then bring ideas here you like and we can all discuss.

Look into google sketchup. There are models of just about every game you can use to lay out your room and see how everything fits before you start. Look for tutorials on YouTube how to use it and ping me if needed. Here was my sketch before we started and it helped me immensely. http://www.youtube.com/embed/b6gOzpNTQlQ?autoplay=1&rel=0

I agree arcade carpeting is absolutely awesome looking, but I love me some ceramic tile for flooring in basements. If you ever get some water issues, you just shop vac it up, good to go, no mold issues.
Have fun, building a game room is a great adventure!

I agree on the tile. My job has taken me around the country, so I've had a few game rooms in my houses. I always had a carpeted game room. Now that I'm home to stay, the game room has stained concrete. Spills wipe right up, games move smoothly across it, if and when I get ready to sell the house it will appear neutral to the buyer.

Why do I want it neutral? The house with the black light carpet might have looked great to me, but not to buyers. Everyone that looked at the house only saw the expense necessary to remove and replace it.

Here is what I got in my game room. My wife found it online and had it shipped from atl to iowa. And to save on shipping she had id it shipped to her work.

2012-08-12_19.55.59.jpg

I would recommend thick nylon twist carpet with thick carpet pad. Reason is-most basements are often un-even and have settlement issues or shift during seasons. Thicker carpet allows for more uniform feel and look. Measure square feet then go to local big carpet distributor and ask if they have extra remnants. You can get good quality for between $8-$14 sq. yard. Then get guys to frame and install can lights. Guys to Drywall and Texture. Leave enough room for code for utilities room. I got led color changing strip on Amazon-$32 and also just picked up color changing light bulbs with remote controls-$8 on Amazon Good luck!

Plan the setup, where you will put the games, neons, other lights, TVs, speakers, etc... beforehand. Put receptacles behind those locations so you don't have cords dangling everywhere.
I cut cardboard to the shape of the games, neons, TV etc... and laid them out on the floor/walls to get a good visual and make sure I liked the way they fit.

I advise a neutral color for paint and carpet also, unless you really plan on living here forever. A light grey wall will end up looking like whichever color your carpet is.
Tile flooring is great except in winter. I had extra thick padding in my basement carpet. Moving games around was a little more difficult but I didn't do it that often.

We had water back up in our basement last year. And since its commercial grade carpet it vacuumed up dry and the is still neon as a mo foe.

Lots of great information here. Really need to decide what you want for your flooring before you move on. I ended up putting down Dri-Core as a subfloor and then some high end carpet tile. Not too thick that the games float on the carpet but easy to stand for hours.

Mine isn't traditional or spectacular at all, but its finished and maybe give you some ideas:

http://pinside.com/pinball/forum/topic/who-is-in-the-middle-or-nearing-the-end-of-game-room-remodel-my-slow-progress

Pics of lighting from amazon...

pics21_001.JPG pics21_008.JPG pics_4-2013_013.JPG

Personally I would not do a thick pad, makes moving games tuff, I would go and industrial carpet, can be black light style or skating rink style, but something that stands up to a lot of game moving. Next install lighting that will be nice and bring for servicing games, but do not plan to use it during game time. If you install drop ceiling put in 1 side of regular lights and 1 side black lights in each fixture, and use 2 light switches. One for full light and one for black. Next figure out game play lighting. This could be wall mounted back glasses with light behind, neon lights, or just your pinball machines and some under cabinet lights, but plan ahead enough to have plenty of outlets! Also think ahead about beer and pizza, where will drinks be set, and where does the large pizza go. A small pub table may be worth it, or even take particle board and build a simple corner table mounted to the wall and paint it or Formica it.

Just some key things I have learned as I go
Lighting for repair
Lighting for gameplay
Food and beverage
Outlets
Heavy duty flooring that allows rolling and sliding of pins

Also keep in mind decorating is not instant, just be ready for the lights and signs, you don't have to have them instantly.

Good luck!

A drop ceiling is a great idea. I've got a switch on the wall that controls outlets mounted above the ceiling for neons. I've done other stupid shit like what my avatar shows.

Your area is not that large and having plush carpet also saves your back. If you are going to be moving pins in and out and trading them like baseball cards it would make sense to have hard floors. I have found it easier to slide with a friend over carpet-but you could just buy a pair of pinball roller skates-easy cheesy.