David,
I usually prefer a reflective floor and absorbent ceiling, but carpet is okay if it's thick enough. The issue is avoiding recurring reflections between those two parallel surfaces. Carpet is thin and so absorbs only higher frequencies, which lets the lower frequencies continue to rattle around. So if you instead put thick dense absorbers on the ceiling you can solve that problem effectively and to a much lower frequency.
Plaster walls are fine, and any problems caused by reflections there can be treated with some amount of absorption in a few key places.
Have a look at the Acoustics FAQ, second in the list on my Articles page:
http://www.ethanwiner.com/articles.html In particular, see the sidebar "Hard floor, soft ceiling" for more opinions and advice about carpet in studios and control rooms.
--Ethan