Appreciate everyone's input and suggestions. Very kind of you all to offer guidance. Really liked the idea of using existing structures with a playset- amazing picture DD! Also appreciate the lighting suggestion. Never even considered adding lighting. Assuming I could dig down 9-12" and regrade the area by reducing the high side by 12" and building up the low areas. This is something I am now considering. Just need to figure out how to frame out the area for the mulch. I have a tree expert coming tomorrow to assess the area and get a quote on plantings and grading. Our township denied my application for a fence permit since one side of the proposed fence falls within an easement area. They did approve planting of trees to stabilize the bank but now denied the fence. So I will just add some type of plantings and regrade without adding a fence. Will look to add a fence later when I have the energy to argue with the township. I am starting to think Michelle's suggestion for purchasing a playset that can accommodate a slope would be the easiest solution. Only playset company I found that could be altered for slopes was Rainbow sets-I still have to level out area for the clubhouse but that is only a 5x5 patch. We still want to fix the sloped side of the yard to make a more useful play area. Will let everyone know what the landscape contractor / tree expert proposes.

You have three choices: 1. Clean out the gash and then fill it with Timbermate floor filler or an equivalent waterborne wood floor fill. Color the fill to match the flooring. 2. Fit a sliver of matching wood and glue it in the gap with a good wood glue or an epoxy. 3. If the gash runs the length of the strips, replace the affected board.

How deep is the scratch? I had this problem and believe it or not "crayons" (a bunch of different colors) worked to fill in the scratch so that you couldn't find it even if you tried. Another approach is to restain the scratch with the color you stained orginally with. If the scratch is skinny enough you could do this with a small brush then lightly steel wool (0000) over the scratch then go over your newly stained scratch with your varnish, using a small brush. You may have to do a few coats just make sure that you lightly sand with the steel wool inbetween coats. Take care to feather out the newly applied varnish into the exsiting varnish. Try the crayons though they worked great for me. It all depends on how big and deep these scratches are. After you are done rubbing the crayons into the scratch take a soft cloth and buff the area well. Hope this helps.

What he said ... I've done it to battered floors in rental housing and they ended up looking still old, but well cared for, like Granny had been waxing and buffing all that time. It doesn't take off much, if any wood, so your floors won't get thinner. 1 - clean up the crud, remove staples and re-set any nails that stick out, scrape up the paint drips. Etc. 2 - Run the square scuffer/sander thing. 3 - OPTIONAL: Wipe on a penetrating oil stain that's medium between the darkest and lightest wood tones (optional, but it really boosts the color) 4 - wipe or brush on a satin-finish polyurethane penetrating sealer. If you do one room at a time, stopping carefully at the door, you don't see the transitions. If you custom blend a stain, be sure to write down what you used.