Solid Hardwood, Engineered and Laminate Flooring - Lead Paint on Floors

My husband and I just purchased a house that was built in 1870. We are on a budget and had planned to refinish the floors in the upstairs bedrooms ourselves to match the original pine flooring throughout the rest of the house. However, after pulling up the carpet, we realized that the old floors are covered with several chipping layers of old paint, some of which tested positive for lead. After doing some research we realized that dry sanding was not an option!
We don't really know where to go from here but we can't leave the floors as they are. I really have my heart set on wood flooring! Does anyone know if wet sanding is a safe alternative (and do the professionals charge a lot extra for this) or would it be more affordable to install laminate flooring over the old pine boards? Or would it just be safer to carpet? (We are planning to have children within the next year and are concerned about the effects of refinishing the floors vs. covering over the old lead paint!)
Help! Thanks!

You might want to investigate this:

http://www.peelaway.com/html/peelaway.htm

Kelly, Because you are a budget it is better than a good idea to contact your Realtor. Lead paint is required to be disclosed by Federal Law. The seller is required to disclose to the Realtor and the Realtor is required to disclose this fact to you. There may be some help due you if you were NOT told of this condition.