That is an idea. I have kids and i was thinking of making this their area.

just wasnt sure how to set it up.

Here are pics of the other sides.
It's really not that big.

Great space. See pics for what you could use each side of those walls for. Remember rugs can break up and define the space. As for the walls, create a window by adding floor to ceiling mirrors by combining smaller mirrors and hanging them in unison together then add drapes to further define that area. Since you have kids, if small make a chalk board wall and use funky furniture to add some oomph to the area. To transition from room to room, have a decorative theme that is carried out through each room so everything ties also, great room dividers are bookshelves and open shelving and pictures or decor that hang from the ceiling (no wall needed). I hope this helps.

could you tell us the size of each space, ages of your children and various things you wish to accomplish in each space. like do you need room for a bedroom?

Sorry I dont have the exact measurements.
guess about 10 ft wide and 30 ft long.

kids ages 16,3,1

Given this is a basement and how old your kids are, you might consider adding a unique design element, like this window-shaped wall-mounted light pictured below. I recently saw this design at my daughter's daycare.

ok, here are my thoughts, one side is to be set up for the little ones to play, i would assume that would be the one with the bright colors and tree. one side should have a table or two with easy stackable chairs, maybe a little fridge, lots of shelves. act as the library, drink station games room. the other side, should have comfortable seating the tv, video games, assuming the eldest will take control of this area. here are just a few ideas.

one other thing when my son was young he had all kinds of building blocks and then the car sets, the planes, the trains etc. i would take paper boxes from work, cover them in - oh gosh, brain burp, you know the shelf lining stuff that sticks? use those as toy boxes for his sets. they are incredibly durable, and the small ones 6 and under can even sit on them. they stack well too.

Those are great ideas. Thx.