Seldom Seen
Observer
It CAN be fixed. I've resurrected tents worse than that and removed the funky smell in the process.
Simple directions from McNett
The only thing I'd add is to use a soft fingernail or vegetable brush to expedite the old flaky coating removal.
Simple directions from McNett
How to Re-coat or Waterproof Your Tent Floor and Tent Fly (http://www.mcnett-outdoor.com/Repair-Guide/Tents/Tent-Floors/864.aspx): Most tents have a waterproof coating applied to the tent floor and tent fly. Eventually this coating begins to deteriorate, which may leave the tent floor or fly feeling sticky or gummy. You may also notice the coating flaking away or you may see water wetting through or you may smell a foul odor. If this is the case, it is time to remove the old polyurtehane coating and apply a new one.
To re-seal your tent floor or tent fly, I would recommend that you use Tent Sure (http://www.mcnett.com/Tent-Sure-Tent-Floor-Sealant-P169.aspx).
Before applying Tent Sure it is important that you remove any previous polyurethane (PU) coatings which may be deteriorating. We recommend the following: begin by filling a tub or container with enough warm water to submerge the item. Add about 5 drops of liquid soap. Submerge the item that needs cleaning and soak for 2-3 hours. Remove the item from the bath and gently scrub the polyurethane coating (typically applied to the underside of tent flies, the top side of tent floors and the inside of back packs) with a mixture of isopropyl alcohol, water and a couple of drops of soap. Keep a dish towel nearby to soak up excessive residue.
Once you have removed the previous coating apply a thin film of Tent Sure onto the tent floor (inside) or tent fly (underside) with the included foam brush. Allow 24 hours to dry. Once dry sprinkle with baby or talcum powder to alleviate any initial tackiness.
A standard 8 oz. bottle will typically treat 85 sq. ft.
The only thing I'd add is to use a soft fingernail or vegetable brush to expedite the old flaky coating removal.