Thanks guys. So far, we're leaning toward restoring the windows. They're the old wavy glass, w/ the occasional bubble. So lots of beautiful character. There's two problems with that though: insulation (single pane) and the fact that they're non-tempered. The first part isn't too big of a concern in SF w/ our mild weather. But the second is huge to us, since we have kids and afaik, non-tempered glass breaks into lethal ahards. I've had nightmares of an earthquate breaking the windows and slicing our necks while we sleep. Am I being silly?
@SkinnyGoomba I agree w/ you to an extent on recessed lighting in a small bathroom. Ours will be pretty small (5'6" x 8"), but the contractor plans to put five lights in, I believe. 4" LED cans, two above the tub, one each over the sink, toilet, and door. Our current bathrooms have a light/vent in the middle and lamps over the vanity. I'd probably have gone with that, but the new main bath will have a fairly large window over the sink. So, no room for lamps or mirror there Although, we may hang a mirror over the lower windowpane, which I've seen in other old homes and liked.
The floor's been removed from the bathroom. It was about 3/4" higher than the hallway floor. The new floor should be level with the hallway, although that may take shaving down the joists a bit.
The asbestos is gone from the ceilings and we were given three options: (1) scrape, skim coat, and paint, (2) nail drywall over the ceiling, and paint, or (3) tear out the lath and plaster ceiling and install a drywall one. We went with the first option. So he's going to scrape loose material (old skim coat and paint), then patch holes/dents and skim cracks, then put a coat of primer on, then a skim coat over the whole thing, then two layers of primer and two of paint. Seems like overkill to me and my brother, an architect, but these guys are supposed to be total perfectionists. Price reflects that too, unfortunately.