My sister here in southern California used the Miracle Method for a tub and tile surround. She used the same method while living in Rhode Island and has been very happy both times.

For a jetted tub used as a shower, it has to have an integral tile flange. That allows the wall cladding to overhang and any water that hits the wall to not go behind your walls. There aren't that many in that size that are inexpensive. It will need a specialized drain, and, if you want to spend any time in the tub, a supplemental heater so the water doesn't cool off so fast. Since it's a tub/shower, the wall cladding will need to be redone to be waterproof into the tub. It's possible, if the build is recent, and it was done with the proper vapor barrier behind it, that only one row of the tile would need to be pulled in order to replace the tub. But, I wouldn't count on that. I'd count on having to replace all of the wall cladding in the alcove. That can be as cheap as a plastic surround for around $100 or cheap tile with the proper vapor barrier for probably $150 or so. The first is the easiest and the least chance of leaking. The second will read as more upscale, but you have to be sure your contractor understands about the vapor barrier and correct materials to use to tile this (NOT mastic.) And since you have that torn out, it would be foolish to try to keep your current control valves for the bath unless they are also very new. New safety standards are in place for anti scald mechanisms. So, you will need a new shower/bath faucet and valve. Then you will need the electrical line run from the panel to the location for the whirlpool pump and supplemental heater. That location is usually opposite the drain side of the tub. You will need to be able to site an access panel that is removable to be able to get to the electrical innards here. That can be from an adjacent room, or from a hidden panel on the tub itself. All in all, you might be able to get all of the needed materials for 2-3K if you shop the box stores carefully and find some bargains. The danger to that is that if you are inexperienced, you don't know if you're buying quality or crap. They sell both. And that's one reason that it would be simpler to let the pro pick the products after you tell him the features that you want. Then you've got to pay the contractor labor to install all of that. The electrician's price will depend on how difficult it will be to access the panel and run the wire to the location. For that, it's a really good thing you are on a crawlspace! That makes it cheaper for both the electrician and the plumber. On the whole, I'd expect your project to cost between 5-7K, depending on location, and if you have no DIY skills to bring to the table and have to hire professionals for the whole job. And be sure that you hire someone that is licensed and insured to be in your home, and will pull the proper permits to get the job inspected with your code office. Some handyman guy isn't licensed to do electrical of that nature, and while he might be able to do the demo and get the tub in place and glue on the plastic surround, it's unlikely that he'll have the right insurance to deal with a large job like that, and thus probably wont' want to pull permits and be inspected. They are usually limited to smaller jobs like simple fixture replacements like a faucet or light. Which this isn't. Just remember, you are doing a project that combines electricity and water. You really have to know what you're doing here! A small General Contractor should be able to do the complete job, and also carry the needed papers. And he should have no problem with the code guys coming in to inspect his work either. If he does, then he's not the right person for the job.

Nigelsgarden, The only reason the old finish has to come off is because it's not original. The tub has already been re-done once. Thanks for the link, I'll check it out, Live Wire Oak, I take your point, believe me. But while replacing the tub would be sensible, it would be neither cheap, nor easy. It won't fit through the bathroom doorway, and will have to be broken up with a sledge hammer, and the shards and pieces carried downstairs, over newly refinished hardwood floors, out to a rented dumpster on the street. Then the surround would have to be re-tiled (and even the ceiling's tiled). Then the tile floor would have to go because the tub's an odd shape, and the flooring tile goes under a working radiator (also cast iron) and continues part way up the wall. Trust me, adding up the 'cheap fixes' will amount to a fraction of the cost of gutting everything. This is Pandora's bathroom...

Rust stains are very hard to completely remove. That is a lot of rust! I'd try to clean it first, see if you can really get it completely free of the rust stains. That in itself won't be easy. If you can get it all cleaned up, and if you can determine that the tub itself isn't rusting the next decision to me would be keep it and work around the pink, or replace it with white. ( I am assuming the rust comes from iron in the water, maybe?) Tub refinishing does look really good when they finish it, over time though, there is no way it can be as durable a finish as a factory porcelain over cast iron (or steel) tub. I'd probably replace it if it were me, I don't think it will clean up 100%. We had iron in our well water in our first house, we'd get the occasional rusty stains, not nearly as bad as yours, but they were difficult to clean. But its worth a try. Of course, if your well water has iron, you will probably be dealing with rust stains fairly often.