As you can see I'm building one in my living room. :)

As far as I can tell there's no long smelling affects.

The MAS epoxy does _stink_ until its starts to kick, usually about 2 hours. I think this is a good thing though, it makes me keep the mask on until till the surface has kicked. Although I'm beginning to feel a little bit like Darth Vader watching TV with a mask on my face. And its starting to get cold so leaving the sliding door open is not fun either. :)

I'll be moving to a place with a garage in April, its best to have it in a separate space. Your basement sounds good. Just keep the flames away from the furnace like people suggest.