What are the best practices for refinishing a dry basement economically?

I am going to refinish my basement and I would like to know what the best materials are to use. The basement is very dry and does not have any flooding issues. I am thinking about tiling the floor and using drywall for the walls and ceilings. Are there any special preparations I need to make while laying the tile and framing the walls? Also, what is the best drywall to use?