We've considered Flor.

But even though our basement is at grade, there is always a danger of flooding from the water pipes, however remote.

Right now we are thinking of adding a color to our concrete slab when it is laid.

Area rugs will be added as needed.

When I was seeking flooring ideas for my basement, I heard about carpet squares. They go down easy, very much a DIY project. Also, it you happen to get water you can easily replace them.
check out my thread...

Here is a link that might be useful: carpet for basement, any recommendations?

I'm doing the same type of research. I found this place, but admittedly don't know about the quality. I plan on buying a few samples to see if it's what I want.

Here is a link that might be useful: Carpet Tiles

iCarpetTiles looks like an outlet for Lees' modular carpet. As such, it should be a pretty good deal provided you find what you want. Lees is a huge carpet maker and, assuming there's some sort of warranty with the odd-lots and closeouts they're selling, it could be a very good deal.

I was even looking at their $.50 per piece "mixture" as a fun way to carpet a rec room. Very economical.

One thing to consider with a "mixture" like that is that the backings and pile heights are the same. It's a false economy if the tiles don't fit together well.

I am going to use Legato for my finished basement bedroom. They have many more colors and two types of nap but unless you go to a newer HD, you have to ask to see the book of samples. They nicer colors must be ordered.
I'm using Artichoke.

FLOR is a modular carpet flooring system that allows you to create your own rugs or wall-to-wall carpeting of any size. In addition to being made from recycled and renewable materials, the modular pieces result in less waste from cutting to size, and worn spots can be pulled up and replaced without replacing the entire carpet. Worn carpet pieces are accepted by the manufacturer for recycling and recycled back into new carpet.

Here is a link that might be useful: TileLand

I also am trying to find out if anyone has used Flor/similar in the basement-same concern, no pad-I recall the old indoor/outdoor carpeting my folks used in the 60's in our basement and how hard it was, don't want that. Is there such a thing as a pad for carpet tiles?

Michele,
We wound up going with Milliken's Tesserae. It does have integrated padding.
Here's a copy of my post about it (which is now on the next page--I also have pictures there):

"We used Milliken Tesserae carpet tiles (panels) in our basement. Our situation sounds a lot like yours--we put them down over bare concrete in a basement that is half children's playroom half media room. We've had them down for 1 1/2years and have been thrilled so far. They keep the floor warn; they are very comfortable (surprisingly soft and padded--we went with the highest end ones--I believe they are called "Tesserae Spectrum". We wanted the thickest possible pad, so we were willing to pay a little more. We orderedl them from fastfloors.com. They carpet tiles are fabulous when we (about once a year) get a slow leak from under our basement stairs. This happens during torrential rains, and we just pull up the relevant panels, let the concrete dry out, and then replace.
We used wall to wall frieze on our stairs--there's no real way to use the panels. We took a panel into a carpet store and matched it as close as possible. It's not perfect, but if you weren't looking for a difference, you wouldn't notice it.

Laying them out is pretty easy, although trimming the edge tiles is a bit of a task. But slightly raggedy cuts don't show at all, thank goodness, as long as the tile is cut to the correct size.

Let me know if you have any more questions. Menards never used to carry these--that's great that they now do! Home Depot sells the Legato, but the Tesserae is usually only carried by carpet stores or on-line places."

Flor tiles are pretty expensive, and they are connected by stickers on their backs. Basically, they look like a bunch of 12 x 12 squares of carpet sitting next to each other - the edges are pretty noticeable. I'd probably only use them again if I wanted a checkered design with different colors. They also have kind of slick backing, so you need a rubber mat under them.

Has anyone used these tiles before? "Berkshire Flooring" They claim to be the most seamless tiles and they are significantly cheaper than anything at Flor. I think they have a cushion as well like the Milliken product. I first came across the product at Home Depot, but did a web search to find the manufacturer.