[MikeBmusic]

Wood paneling, carpeted floor in a basement, you probably have a real bass wave problem and won't know it until you start recording/mixing down and listening to your mixes in other places. You could also have some slapback echo in there from the paneling.
That folding panel thing won't do anything for you as such. You could drape some heavy duvets or blankets over it to make a movable gobo wall to isolate an amp or drums a little. I built something similar, 7ft tall, covered in foam and styrofoam-pink insulation, and hung duvets on it to try to block the outside sound from a window and to help isolate room reverb when recording a very low volume mandolin. Way too much effort for very little result.
What you are going to need is some good bass traps (broadband absorbant panels). 4" thick x 2'x4' - you can buy them (tend to be expensive) or make them yourself. Use Roxul or OX 703/705 insulation, framed with 1x4 and cover the whole thing with cloth (lots of instrucitons on how to do it online, including youtubes). You can hang them from the walls/corners, stack them, use them as gobos.