I will be taking out the plaster on my 2 exterior walls of my 10'x6'8" bathroom. Unless I hear of a better idea:) I want to put in insulation and rewire. This house is from the 1920's. This add-on BR was built on in the 30's and has been quit functional. I don't know of the date of the fixtures. They look like from the 40's to me. The layout will change a little as I consider my options.

Here is a picture of the bath exterior wall that I will want to tear out and insulate. The window will stay the same size I believe. A new tub will be placed in this location. The cabinet to the right will be replaced and will house the plumbing as it does now unless I get a better idea:). I am not sure about the tile location. I may want to only do a wainscoting style or I might do the whole darn thing:

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This view is along the sink wall and is another exterior wall that I want to take down to insulate. I am planning on moving the sink across from where it is now. I plan to move the toilet to approximately where the sink is now:

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My Questions are:

1) What do I put back up on the wall to cover the studs and insulation to prep for tiling?

2) What is the recommended procedure to use in setting tile on a bathroom wall?

3) What are the recommended products to use on a bathroom tile install.

4) Some of the walls will be the orginal plaster that I want to tile over. Can I do that?...and how do I prep the plaster wall for tiling?

I want to do this correctly and expect that my installation to last 50 years or more. I'm not kidding.