i`d have to say the entire lower part of the basement needs to be stripped, the frame stripped, all visible mold killed and removed and a proper enviroment reestablished before you go back with anything new. wearing proper clean suits and an appropriate resperiator seem to be the best route. wood doesn`t have to necessarily have to be removed depending on the amount of infestation. before tackling anything, i`d talk to the state board of health and maybe an enviromental toxocoligist. read the earlier postings.