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It is not necessary to add insulation to the areas within the exterior wall voids because the rest of the wall is not insulated now. If you are okay with the additional cost, it can't hurt to add the insulation and ideally the entire exterior wall would have been insulated from the start.

It is also not necessary to apply felt paper to the wall studs when using drywall. Drywall can be screwed directly to the wood studs.

When installing the drywall for inspection, most inspectors will look for the length of drywall screw used and the spacing of the screws. Also make sure that the drywall is raised up off of the floor about an inch when installed. When you apply new baseboard it will cover the gap at the bottom.

The most difficult part of the job will be matching the new drywall to the previously cut plaster. Plaster will typically have some rough edges, which you can sand down to smooth. Try and fit the new drywall as tight to the edge of the plaster and leave as small a gap as possible. This will make it easier to have a clean job when it is taped and finished.

Feel free to post any follow-up questions you may have.

Expert:	Home Improvement Jay
Pos. Feedback:	98.9 %
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Answered:	10/7/2009

General C&ontractor

6 years exp. residential home and pool construction; mold, fire and flood remediations.