What to do with Plywood floor???

Ok so my carpet is completely shot, my children have destroyed it. I would eventually like to put down laminate and maybe carpet that doesnt show stains in my dining room and living room, but just dont have the money at this time. Ok so today I pulled back the carpet and padding and found some kind of wood ploor almost cork like. I am thinking that its plywood but seems to me as softer. I was wondering since it seems to be very porous if it can be finished cheaply until the time comes to lay something down, or would I just be ruining the wood underlay. If it would be a waist of time, is there any other cheap alternatives, other that area rugs. This floor seems like it might cause some splinters. Any info or web sights with neat ideas would be great.