Wow man 8'X7'. I would divide the room in half.
There is a great film if you have highspeed. Its called Mr. Green: I Grow Chronic.
http://www.pot-tv.net/archive/shows/pottvshowse-2993.html
an hour and a half film on how to produce at least 1/4 lb. every two months. of course his set-up coulda yeilded a lot more than that. That was assuming 1 oz. per plant, which in his set-up shoulda been way more than that.
Mr. Green has a basement configuration just like yours that he is showing how to build.
He uses a drip Hydro for veg and an Ebb-n-flo (flood and drain) system for flower. Stoney bud is tha man on the forum when it comes to ebb-n-flo. So you'll want to post that question up in the hydro section.
I would run (2) 600W instead of 1000W in your area. its better in a large area to have more light coverage than one in the center trying to reach the "shaded" areas. The only other alternative would be to put the 1000W on a light mover. This is my opinion and am sure you will get other opinions.
I would also do what the Mr. Green movie did and divide the area in half. 1 area for veg and clones. Then the other for flower. This would enable a pure female run of bud, without having to weed out males in flower.
Basement grow: biggest hurdle is mold, excessive moisture, and stale air. so you'll want to keep an eye on that.
For the last question. Yes you can get cool reflectors or cool tubes for the light, and it is recommended to keep the ballast away from the actual grow area to help reduce heat that way to. Electronic ballast run less hot and more efficient than the original "analog" ballast. but they cost way more $$$.
You'll need to set up some cage fans or inline duct fans to help with your venting maybe.
Also and area this big, packed full. Odor may be a problem. security should always be #1. and the whole block smelling like a skunk farm can comprimise security. so you may want to look into a carbon filter.
Hope I helped ya out some.