Can I Lay Hardwood Floor in a Dry Basement?

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Hey guys, I enjoy listening to your show and I'm looking for some help with basement flooring:

We have extended gutters, gravel and sealant around the exterior of our home's foundations, and a French drain which empties into two different sump pumps. So water in our basement is not a problem. However, there is a lot of dust like you mentioned on your program, so I agree that carpet  in our basement wouldn't be a good idea.

The basement floor is not level.  There are small cracks and such, so tile would probably break over time, and is too expensive. I'm trying to do most everything myself and on a budget. There is a lumber yard just down the street and they can cut fresh planks that I'm thinking about laying down over some underlayment, and then sanding, sealing and staining the plank on top. Any thoughts or other ideas? If I do go with wood, do I need to put down anything underneath between the concrete and the underlayment? Thanks!

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