Using heavy cloth as a basement ceiling can actually create a minor sound barrier between the living areas above and below the ceiling. Footsteps from above, excited cheers from below as someone watches a game or plays video games - this sort of thing can be disruptive to people in both areas. Muffling these sounds even slightly results in a better enjoyment of the areas.
Once you have nailed up the drywall you will need to tape it to cover the cracks between sheets of drywall and the places where you nailed the drywall to the frame. After it is sanded smooth you can apply the paint or acoustical material.
If you choose to drywall your basement ceiling you will need to nail a frame to the bottom of the floor joist to have something to hold the drywall in place. There are many drywall tips that you can get on your internet web sites if you need help.
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