Home Remodeling Question Regarding Basement Wall?

My girlfriend and I have a partially finished basement. She wants me to divide part of the basement off for an office. What is the best wall/divider/partition I can use so she will have privacy from the rest of the basement? Is Drywall the only answer? What can I use for a nice ceiling as well with lighting? Thanks for your help, it really means a lot to us.

View this post on my blog: http://madeinhome.info/home-remodeling-question-regarding-basement-wall