This is in response to the suggestion of taking the plaster walls out in order to insulate. I offer the thought/question for discussion as much as expert responses but with a strong bias toward leaving the plaster intact because drywall is inferior. (Just compare the cost of new drywall to new plaster if nothing else.) At a time when my ex-husband was teaching college classes in thermo-dynamics and consulting for a contractor who built super-insulated, passive solar houses that could function without furnaces in cold climates (by way of expert references,) what I retained from some conversations was that the best insulation is dead air. e.g. when the pink stuff isn't fluffy, the trapped air is pushed out and insulation value lost. So I have thick plaster over wood lath interior walls and thick stucco outer walls in a 1913 house in a very cold climate (Central Minnesota, planting zone 3.) Whatever insulation was ever in the walls is most likely packed down in the bottom of the stud bays. The outside walls are cold to the touch in the winter and cool the rest of the time. On the other hand, it takes at least 24 hours for the house to lose its heat/cold - change interior air temp - to match the outside temp, even with some windows open. With the thermostat set at 65 during the day and going to 55 at 9 p.m. (very comfortable for me,) the radiators heat up in the morning and stay cold the rest of the day as long as the outside temps are +0. In short, I vote to keep the plaster and don't worry about wall insulation in a mild climate.

I am not-repeat not-a professional or expert, just a homeowner like yourself. Jost some ideas.... The edges: If it were mine, I think I would just tape and mud the wall and ceiling as best I could, and then cover the wall-ceiling joint crack with a crown molding or maybe even just some quarter-round stock. Light fixtures: On This Old House, when they have to make this cut in drywall, they use a special power tool with a spiral cutting bit that look like a drill bit, that guides on the inside edge of the metal fixture mounting box in the wall or ceiiling. Looks like you did this by hand with a keyhole saw or something similar. From what little I know about it, I'm not sure you can fix this with tape and mud. Again, if it were mine, I think what I would do is go down to Lowe's and buy an inexpensive plastic ceiling medallion, just big enough to cover the ragged part, and install that above the light fixture. It may be a bit "grand" for what looks like a pretty small room, but it's a lot less trouble than tearing out the ceiling and trying again.

I guess it depends how much damage is done, hubby was way too aggressive taking off old tile. We had to have a drywall guy come in and install new drywall, and the seam tape had to be covered before tile man would do work. Some tile men do the repair of dry wall, but it sounds like you are doing the tile yourself? If you only have a few small holes, your solution sounds good to me.

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