I decided the best way to paint the sewing room would be one wall at a time. So I moved everything off of the first wall and into the center of the room. This wasn't really much of a change from before.
I used a standard latex primer because we've never had any moisture issues. If you have a wet basement you should use something like Drylok. I'll put up two coats, just to make sure everything gets filled in, then I'll add paint.