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You're saying downstairs as in basement or main floor? If basement you'll need some kind of waterproof underlay like Delta FL or whatever.
The walls and floors covered in OSB might be a little overwhelming if it's all varnished - a little too much yellow wood.
The neighbours did their kitchen floor in OSB, turned out well - durability will depend on type and number of coats of preservative.
withered_preacher
Tenderloin
That looks great. That's pretty much exactly what I'd like for our spare room.
I'm going to be covering the floor downstairs using large sheets of baltic birch ply laid in alternating tiles, sanded and varnished.
In the upstairs office/spare bedroom I was going to cover the floor and walls in OSB board. Sand and varnish the floor and paint the walls.
Both seem cheap and easier, whilst providing an interesting finish.
Any reason this wouldn't work?