Insulating an old cottage for year round living in the north..!!!

[Dilly]

Hi everyone,
I have been going to build a  version of the 1.5 story this fall. I have been trying to sell my home
and build this on my cottage lot tearing down the old family cottage.
After trying for 6 months to sell my home I finally got a deal done. Not near where it should have been but nonetheless it sold. I have 2 problems winter coming on as I live in Central Ontario. The other problem is with all this recession stuff coming down the pike and just losing my job.  I am in a tight situation.
My cottage has been paid for  and it is 27'x26'  not large but there is only me and the dog..  It is set on piers sunk in about 60 years ago.  It is a 600 square foot frame uninsulated cottage.  The walls and roof are rough cut post war 2x4 so they are real full size 2x4.  The floor joists are rough cut 2x6.
My thought are to insulate the walls and ceiling by adding rough cut 2"x2"( from a country mill nearby ) I would then to put in insulation and a vapor barrier and screw on drywall to cover.  I would do this to the   roof (Talk about cathedral ceilings),walls and floor. My heat source as my cottage is on sewer/water/gas would be to run the gas line in and put in a gas fireplace or something like that for heat.  My windows are single pane so for this winter I would plastic the inside or find windows at restore as we have several around in our area .
I looked at renting for the winter but the rents are so high  and people want 1 year leases up our way and no dogs and i think I would be fine if I spent a couple of weeks doing this. Hopefully by spring things will have turned around although i don't see it with what the stockmarket is doing. I could of course if I get it going with a new job and the econmy improves still go ahead with my new structure saving the insulation to be used in the new home.
I have hit the panic button so I am sorry to ramble so.
Any thought as to anything else I could do to make my 2 season cabin into a 4 season home.  I surely would appreciate your comments.
Ideas are so welcome.  I can do most things if given direction and not afraid to tackle projects as now I have time on my hands. I know I have to rewire part of the the cottage as it has the old cloth covered wiring do I would update that first.
Do I need to worry about airspace between the batts of insulation and the roof?
My cottage looks like a framed house befor the drywall and insulation are added. Worst case scenario is to raise it and put in a basement come spring and my son is a brick/block layer and the basement will be done for the cost of materials.

Where do I start? What are your thoughts. Living there actually is kind of exciting but I know it will be cramped for the time being.

Thanks
Dilly

[muldoon]

It seems that 2 inches of insulation is not going to provide much protection from the elements, especially in Ontario.  You might want to consider 2x4 or even 2x6 wall studs to give you depth for insulation.  You will also need some depth for electrical boxes and switches behind the drywall. 

If you have the funds I would try to go with a closed cell foam insulation as it will be a much better seal and gives higher protection per inch. 

some ideas on that.. 
http://www.google.com/search?hl=en&q=spray+in+insulation+diy&btnG=Search
http://www.energyefficientsolutions.com/foamproducts.asp
http://www.diynetwork.com/diy/hm_insul_effncy/article/0,2085,DIY_16803_2749757,00.html
..

Also, my wife purchased some thermal insulated material for making curtains, it has made a noticeable improvement during the summer in Texas I imagine it would help with the cold as well. 

Other than that I think your plan is very workable.  Have you considered a woodburning stove?  Even the small ones could do a decent job in 600 square foot cabin. 

Can you post some pictures of it? 

[Dilly]

The cottage already has 4" walls and by adding 2" that would give me 6" depth in walls and ceiling.  and the same in the floors. 
I already have an airtight wood stove in the cottage.  That will certainly do most of the heating if I don't go to gas.  That is interesting about the drapes and that is another avenue to venture down. I had thought of removing the woodstove just for the fact it means I need to be there all the time. I had thought a gas fireplace would make it easier.

I am just wondering is it more economical to heat with Electric baseboard heaters than Gas considering that gas is more market driven and electricity is more stable these days and huge increases in Electricity don't happen up here not yet anyway?

The whole interior of the cottage of course is open to the roof soit has open handmade trusses.  I thought I might be wise to put an industrial ceiling fan to move air around which is pretty key in heating.

The one thought about all of this is that it will be interesting to see how it will be to live in such a small area
I have been going to move up there since I was 21 and now it is going to happen.  Not quite exactly as I had planned it. Any other thoughts?

[JRR]

.......I have been going to move up there since I was 21 and now it is going to happen.  ....

So, a couple of years have passed and now .....

My wife and I have been "working" on a mountain cabin for years.  A few days at a time ... year around.  Tho our winters are not as severe as yours, we have no heat ... except for heating bath water and cooking ... electric cooking stovetop.  In fact, tho the building is dry from the rain, there are still gaping holes in the wall sheathing letting the wind blow thru.  How do we manage? ... with a tent set up inside.  Air mattress inside the tent.  Rubber tumbling mats beneath the tent.  Thermal sleeping bags, etc ... we stay quite warm inside the zipped-up tent.  There is indoor-plumbing downstairs ... when I can keep it from freezing ... but it makes for some cold "night trips" when the air is frigid!  So, you might also consider a tent til you get the building buttened up ... and perhaps even after that.

Plans: For wall insulation, I plan to first place 15# felt inside the studs and outside sheathing.  Pressing the felt to take the shape of the void.  Then nail on chicken wire fencing against the inside face of the studs.  I have some 4" stud walls ... they will be increased to 6" by using strips of 2" foam insulation against the studs.  Then I expect to fill the voids using cellulose insulation dampened with water and ( ... perhaps lime?).  After the insulation dries, there be a felt covering and then plaster.  Remember, I haven't tried this yet ... but I may soon do a little experiment.

For the floor, ... a covering of 2" rigid foam atop the in-place flooring, and then the foam gets a covering of plywood and carpet, or tile, to keep me from destroying the foam.   This is another yet-untested hairbrain idea.

.... stay tuned!

[ScottA]

The tent is a good idea. I was going to suggest using canvas or old blankets to drape the walls and ceiling until you get it done. Just hanging a heavy drapery on a cold wall works wonders.