(Is it REALLY you?!) A little water in the basement one day means maybe a lot of water another day. Assuming you were to do nothing to mitiage the potential for water, what you'd end up with is a moldy/mildewy smell whenever you get a little water. It's not a very pleasant smell. So simply raising the floor and finishing it off isn't a good idea at this point. On the other hand, if you had stated that you never get water, even during hurricane Floyd, then it's a different matter.
So, what I suggest you do is address the water issue. Otherwise, you'll be tearing up the floor and fixing the water problem and refinishing it 1 time too many because of the smell. After that, tell us what the preventative measures are, and that you want to finish up the basement, and install a floor. For now, my best to ya and hope this helps.