After an evening of watching Holmes on Homes (my new favorite show), I decided to tackle a project while my wife was off visiting her sister on the east coast.
We knew we had to replace the drywall in the hall from a previous roof leak (fixed long ago), and I figured it'd be good timing as I was planning a trip to the dump (and could haul away the debris). However, when I cracked the drywall, I had no idea the area was as badly damaged as it was: old mold (now dried-up, but still nasty), and a bit of dry-rot. Fortunately, the sill-plates and headers were still amazingly very much intact -- but the base of the studs were toast (they likely wicked up the moisture from the bottom).
So, in true Mike Holmes fashion ("If in doubt, tear it out."), I took the initiative to fix the area while I already had it torn apart. Since the siding was still adhered to the old studs, ripping them out was impractical (and unnecessary), so I sistered new studs (only 2 were effected -- the others looked good as new) alongside the old ones and again in Holmes fashion ("if you're gonna do it, glue it and screw it"), I glued and screwed the new studs to the old ones, which -- considering the top and middle of the old studs were still quite solid -- should make for a long-lasting repair.
With new insulation in place, it's lots quieter and a lot neater (and smells a bit better). We're using Johns-Manville Comfort-therm insulation on the outside perimeter... it's completely encased in a plastic sleeve, so it should serve as a more effective vapor-barrier than standard friction-fit "pink" which we're using on the interior walls -- plus, with no paper involved, it should stay mold-free. Now if I could only find Mike's favorite Tuck-tape to seal the seams...