Definately Hardwood.
I bought a 1950'a built house the other year. It has old wood floor in the bedrooms & living room. I stripped it all down to the bare wood and installed new wood flooring in the hallway, dining area & kitchen. Then I stained & polyed the entire house. It was a heck of a project doing it all myself, but it looks fantastic. All the tools needed can be rented at Home Depot.
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