Yes (if you could push it) it would move independent of the tiled parts. The old wall (tiled shower surround only) was cut out and replaced with new. I've been asking around and someone suggested I get a drywall person to 'smooth out' the wall above the tile to the ceiling and that person should be able to fill and smooth out the vertical side wall. At least the wall could then be repainted and appear smooth again. However, I now have another problem. The new plumbing pipe that was installed inside the wall for the hot cold handles...doesn't stick out far enough to actually put the new handles on. I can't believe it! I am meeting a plumber there tomorrow to find out if he can make some type of ajustments to what is already there so I can use the handles that I bought. I wonder how much this will cost. I already fired the first guy I had who made all these problems. and Paid a second guy to do the tile job. He wanted $450. I hope that wasn't too much, I just don't know and HAVE to get this thing done. It's the only bath.

Yes, the plumbing needs to be done first. Yes, you may be able to just get another acrylic shower wall to cover over everything, if the wall is not moldy or wet behind the tile that you are looking at. There is no need to replace the tub itself if it is in good shape, even if you do decide to take down the wall tile and replace everything from the studs out. Just make sure the workers cover the tub well to protect it while the work is being done. I am with Monicakm_gw, get some more bids for the work. You might want to have them bid on just replacing the walls with new fiberglass, and on doing the whole new tile job, too. You can see new walls at Lowes, Home Depot, and Menard's online. There is also the whole Marbleite wall option to look into. Local dealers for Marbelite are supposed to be cheaper than buying from big box stores, if I remember right. While you are fixing plumbing, you should probably put in a proper mixing valve to protect from scalds. It is the code now. No one will be able to turn the water too hot to burn themselves and flushing the toilet or using the water elsewhere in the house will not burn the person in the shower anymore, either. I have read the experts here on the forum say that the Symmons Temptrol system is very good and is a good value. Here is one that comes with the shower head and tub spout for under $100. http://www.homedepot.com/p/Symmons-Temptrol-1-Handle-Tub-and-Shower-Faucet-in-Chrome-S-96-2/100643619

My eyes are closed and am holding my breath for you... NO... there is no possible way at this time for this to be fixed. If you hired a professional I would demand them to re-do it ALL... First off, the tub appears no not be level which if this tub was existing the tile setter should have installed a proper tiling flange at the bottom to prevent this from happening. Why are your walls "built up"??? It looks like they added another 1/2" to all sides for the tile... but why!!! Why is the shower arm still installed and now back in the wall? no, no, no, no, no!!!!! Did you select new fixtures or are you re-using the existing?

So, to be clear, I wasn't really talking about the drywall - I was talking about the backer-board behind the tile. That should be 1/2" cement board or something similar. You won't be able to feel it, you will need a visual. If it's a bad install, two things that can happen: 1. There was no waterproofing and so the water seeps through the grout and such and into the backer board. 2. The backer board sits too far down on the tub, without an air-gap. And because of that it is wicking up water from the edge of the backerboard. You will only be able to determine that (without taking the tile off) by getting a visual of the back side of the backer board. If the bottom edge of the backerboard looks dark from moisture, it will have to be redone. ____________________ Since you say that the door is properly caulked, the other place I'd look is the junction between the tile and the tub. That appears to be grouted when it should have been caulked. Anywhere there is a change in plane it should be caulked, not grouted. To do a better job, fill the tub with water first so that there's weight in the tub before you caulk. Yes, water sitting on that tub/tile edge over time can cause moisture to wick horizontally through the grout and cause the issue you see on the drywall. Caulk the tub/tile joint to prevent water that sits there from being drawn into the grout.