My husband & I did this remodel. All I wanted was the builder grade fixtures replaced with Kohler to match the rest of the house, a new row of accent tile around the top of the bath tub,(we kept the main tile that surrounded the tub, just replaced the border tile, it was aqua! yuck! :0) ), ceramic corner shelves for soap/shampoo,glass shower doors, ceiling light & new wall paper. My husband is a contractor, the cost was $1000, but the work.....OH MY GAWD!!!! He had to tear out the sheetrock on the wall next to the tub(ceiling to floor), the builder grade faucets were NOT brass and could NOT be modified for the upgrade. The border tile replacement meant buying a 4" right angle grinder with a diamond blade, a tool specific to this job. The little 8" border tile cost $369!!!!! It took 6 weeks to order, it was not in stock,but fit the space perfectly. :0) The cost was tiny compared to hiring it done....but it was a shambles for months.

Why would the floor be higher if you took out the old tiles and replaced with a proper underlayment (not plywood, I think), than if you tiled over the old tile?

:) Sorry, the world is littered with 3 and 4 letter acronyms, based entirely on venue and context - makes it hard for some (me) to know who knows what when. Anywoos, tile is relatively easy to install, especially is your walls aren't soggy from mildew and dryrot. There are many online sources you can find that can help. At least with the Schluter, you don't ever have to worry about a bad tile job causing water damage. Pick up a book online, Ebay is a good place to look. Search for "tile books" I am sure you can come up with some book that will help. One thing I want to mention - green/blue/cement board used for backing tile installs ARE NOT WATERPROOF - these materials are considered WATER RESISTANT. There is a big difference. Only some sort of water PROOF membrane is truly water-proof. Put another way, the difference between resistant and proof is the difference between you needing to re-do your shower now or never. Good luck!!

My son and I removed the original tile floor in this house. It wasn't down that solidly and when we cracked one tile with a hammer and started prying it up, much of the rest came out in strips. There is a tile removing tool we bought at Home Depot -- like a putty knife or scraper but heavier and made to be hit with a hammer or mallet on the end. Buy one of those and some leather gloves to protect your hands (heard of ceramic knives -- those shard are very sharp). Wear protective eye wear and clothing (not a time for tanks and short shorts)and consider knee pads or a cushion. For the backsplash -- I'm with bee. The drywall will get damaged. If you only have holes, it's not that hard to fill, but the raised places around the holes and truff spots have to be sanded and levelled. It is easier, faster and possibly even cheaper to install new drywall that to go through that much fill, sanding and clean up -- especially if you are going to live with the results for any time at all. It's not going to look good, so if you want to paint and live with it for a while, bottom line -- new drywall.