Hmmm....it may not be as nice as rice paper, but why not just rip the carpet up and paint the floor? Poly it a few times and get some rugs.
I don't remember, have you checked into peel and stick flooring? Like the stuff they have on trading spaces?
I don't know if it will help with the nicotine smell, but why not cover the walls with fabric? Or did you already get it painted?
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