We finished putting up the drywall on the outside basement wall today. What is left is:

1) Replace bi-fold laundry doors with real door, and reclaim 12 inches of wall space
2) Install new wall to complete the basement bedroom
3) Install pocket door in new wall
4) Tape, mud and sand new walls (hi Lazuli!)
5) Prime and paint new walls
6) Repaint floor a darker color Install laminate floors we got really, really cheap

Pictures below.