I am preparing the lower bath and basement stairs walls for painting. The previous owner used wallpaper and (cough) contact paper. Taking it off, I've left noticeable divots in the walls, and the contact paper on the basement stairs tore down to the brown paper. I've mostly removed the wall covering and it now looks like this: http://imgur.com/a/kKrVM From various reading, my plan of attack is: 1) Remove remaining hints of paper. Sand with 220 to smooth out (especially on brown paper and near any damage. 2) Paint a single layer of Zinsser Peel Stop on all walls. Allow to dry 24-48 hours. 3) Apply a layer of Sheetrock Light Weight All-Purpose Joint Compound across the entire walls. Probably a little overkill for the areas that weren't damaged but to be honest it wouldn't take too much additional time. 4) Allow this layer to dry 24-48 hours, and apply second coat? Repeat for third coat? (I seem to have conflicting information on this. 5) Paint with primer or primer-included paint. My questions are: 1) In the bathroom, there is a mirror on the wall. Could I get away with leaving it there? Is there a recommendation that I remove it (I'd rather not). 2) Should I spackle in the holes prior to using peel stop layer? Particularly if the ones that are more than a 1 MM deep. 3) Should I apply multiple layers of joint compound and/or is this step going overkill? I think a single layer is necessary at this point to smooth out the walls and cover over where I stripped to brown paper at least. 4) In the bathroom, I am strongly considering using tile on the lower half, because I think it would be easier to clean and I it looks a lot nicer (love seeing this in hotels I visit). I'd also like to do this upstairs, so starting on the smaller lower bath would be a good practice. Are there other special considerations I need to be aware of on this area of the wall? (i.e. if the underlying drywall can handle the weight of the tiles, or special prepping). Thanks in advance for any advice!