Focus on walls, not foundation
There is some good news. You can rock right over your plaster ceilings. Use 3/8-inch drywall and 2-inch drywall screws in the ceiling joists.
Make no mistake, this is lot of work. But, especially in this economy, it's worth the time it will take to avoid the cost of a new foundation.
Finally, unless you have a couple of strong, experienced buddies working with you, rent a drywall lift. It will be money well spent.
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