can you put some portable tables around your machine downstairs? Like card tables or small banquet tables?
How old are the kids? Mine used to like using the dining room table as a fort when my quilts were dangling over. Of course, you can make some additional draping for their benefit, like a big sheet or tablecloth, but it worked for me when they were little.
They also got used to the sound of the machine and my daughter actually found it lulled her to sleep, but I guess it depends upon the machine and how loud it is!
Good luck and hang in there!!
Lisa