We put laminate flooring in our basement on a cement floor and it's wonderful! We got the cheapest laminate Home Depot had, but got the priciest underlayment, and I'm glad we did. It's got some give to it and makes walking on it really comfortable. You'll need to make sure your floor stays dry, but the flooring is relatively inexpensive and easy to install.
You can also take down your garage door and "wall in" the hole it leaves behind. This will give you more wall space.
Have fun fun with your project!