Have you gotten a price on spray foam yet, it will be about 5 times what fiberglass would be, it's better but not by that much to justify.
Those coller ties are going to have to come out and 2 X 6's or better yet 2 X 6" added so they sit on top of those walls. Right now there's no way to make a right angle corner. I know your wife said the wanted the catheral ceilings but if there's no coller ties there's nothing to stop the roof from speading and sagging under a snow load.
Also with a catheral ceiling all the heat stays up at the peak of the ceiling not down in the room.
Last edited by joecaption; 11-14-2011 at 04:45 PM.