If you are looking into using tile, how about checking out large Saltillo Mexican Terracotta tile? It's very durable and can withstand the amount of traffic living areas tend to have. With the low ceilings, it will help make the space appear larger, especially when you use large tile sizes. You may want to also consider Cantera Stone tile if you are looking for a more neutral, lighter stone. Here at Rustico Tile and Stone, we offer affordable wholesale pricing and low shipping rates all over the world. Visit our website at www.saltillotileconnection.com. Below are just a couple of examples of how it can look.

1.) The first image is of 16x16 Traditional Terracotta Saltillo in a small sunroom.
2.) The second image is of 12x24 Manganese Finish Saltillo in an open basement.
3.) The third image is of Cantera tile used in a shower, but looks great as floor tile as well.

Luxury vinyl has several options that can go over that tile easily with MUL product. Several designs to choose from,cost effective and durable!! Try Mannington's Adura collection http://www.mannington.com/Residential/Adura.aspx

We used vinyl flooring. It doesn't seem to be very popular here but we love it. We wanted a cohesive look for the whole basement.

Vinyl plank or luxury vinyl tile will work very nicely in this space.

The new vinyl plank is beautiful and so practical. I am partial to the ones that look like cork.