Finally feel like I am making some progress! New second floor is in and the second floor rooms are almost finished. This house had some major structural issues - you can see the warped wall on the right! I reinforced the entire inner wall by sistering it with another thin plywood piece. My efforts worked in strengthening the wall and straightening it somewhat, but it was so bowed that there was not much I could do but accept it 'as is' and work with it!
The ceilings were very high in this house, so the second floor has been lowered a bit, which will lower the 3rd floor to make those rooms a little bigger- and easier to play in!