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If you could deal with the water issue, there was a great article in Fine Home Building magazine a couple of years ago about putting a floor down on concrete. Basically lay 2"x4" pt sleepers down 16" on center with Liquid nails and then ramset them. Then use 1 1/2" foam insulation board between the sleepers, cover with poly for a vapor barrier and then glue and screw down a 3'/4" plywood sub floor. This would put your subfloor at 2 1/4" height. Also leave a 3/4" gap around the perimeter between the plywood and the wall..
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