Damp dirt floor basement

[Rick Trlicek]

I have an old home with a dirt floor basement (about 6' between the floor and ceiling). The dirt is always damp, but there haven't been any issues with leaks/water. The floor also is uneven, almost hilly. We'd like the basement to serve as a reasonably tidy and dry space for storage, maybe even laundry. What would you suggest for leveling the floor and covering the dirt (concrete?). You've probably seen tons of these old basements. What do people do to get a handle on them?