I'm scrapping the 2x layer of drywall.
So drywall on the ceiling.
ummm..ok..but what about this:
The walls will be framed in 2x6's with 4" OC703 and cloth covering, and 4" furring strips on the face of the 2x6's. .
Wait..wait..let's go back to the beginning here...
I'm going to be gutting my basement and refinishing it.
Ok, we really need to define something here. And please, I'm just trying to help you BEFORE you do anything that can actually be a problem later. This is why....
First off, you don't need "furring strips", especially 4", if you are stapling fabric, just staple it to the studs, plates and trim with 1.5" strips as required. Second, I have a question. Since you haven't provided a floor plan, or any other visual aids, we are left guessing what your real intent here is, and as such makes it difficult to really provide relevant suggestions.
Here is the reason I ask. If you are planning on GUTTING any existing drywall on exterior walls
What it sounds like is you are using what's known as an INSIDE OUT WALL scenario, whereby the insulation is exposed, albeit covered with fabric. I highly doubt you are building exterior walls as this is an existing structure, so this is why I ask. It has to do with TWO things.
1. Since you say you are "gutting" the basement, to what extent are you GUTTING? Apparently, because you said you are planning on using 703 between studs, and covered with fabric, this leaves the reader thinking you are removing drywall from the existing EXTERIOR walls. Can you clarify that please? Reason is, should you do this, you actually are destroying any benefit of a TWO LEAF SYSTEM. In essence, this means these walls will TRANSMIT sound easier than if you didn't remove the drywall, comprende? Here's the deal. A TWO LEAF WALL ASSEMBLY is the BEST Transmission LOSS assembly you can have. Depending on what is on each LEAF, these systems are rated in TRANSMISSION LOSS.. In essence, having two leaves provides what's known as a MAM system, which means...MASS-AIR-MASS. Take one leaf of mass away, and it destroys the system.
2. Assuming you are not building exterior walls, this only leaves PARTITION WALLS. And as such, if you are still planning on lining these in exposed 703, you need to know something. These are what's known as an Inside-Out PARTITION wall, which is actually TWO walls. That is, IF you want to keep a TWO LEAF construction. Which is why we need to ask a bunch of questions. For instance,...you say you are building 2x6 walls. Why? In reality, to keep a MAM system intact, for all practical purposes, these are usually a DOUBLE wall. See my illustration. And as such, there are also many things to keep in mind when building these. Fire Stopping for one. Rods book shows others too. However, for all practical purposes, given your limited isolation needs, in your situation, I'd suggest simply building a simple partition wall lined with typical(and cheaper) batt insulation, and hanging broadband absorption where required. After all, right now, we don't even know what your monitoring layout is going to look like in regards to orientation of exterior/interior partition walls.
I'll put clouds above mixing area and corner bass traps and diffusion, mid range treatment as necessary
Well, in regards to mid absorption, this is what I was referring to. Why build Inside-Outside walls which are WAY more expensive(703 ain't cheap vs batt insulation for COMPLETE WALLS nor is the availability of 4" 703) if all you need is First Reflection Point absorption on those particular walls, which we don't even know where they are right now...see?
Also I'm not that concerned with resale at this time, in the future if I need to I'll put up drywall.
You need to decide on other issues first. Like I was saying.
Does it matter much what kind of insulation I use in the ceiling?
Now that you've decided to drywall it, then typical batt insulation will work fine. HOWEVER, before you install the insulation, I would advise you to CAULK every single penetration in the floor above. Not to mention a hundred other things to be considered PRIOR to building ANYTHING. Hence my suggestion of buying Rods book.
The fact is..you really need to do some research first. If you finally get moved in and can measure the space, come back with a drawing or two and we can help you much more then.