Heating .. Insulation .. installation question

I own an old house in southern New Hampshire. It was built in 1928. Most of this house is NOT INSULATED. I have replaced some of the window, I need to do more.
The walls are plaster. How can I insulate the outside walls? I want to do it right, not a quick fix.
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I had mine done about 2 years ago...what a difference! My heating bill cut in half, has already paid for itself. I'm just south of you, Boston. They did blown in from the outside. They came, flipped up the siding at the base of the wall and at about 7' up the wall and blew in from both directions. Packed cellulose. It's amazing, the stuff is so dense inside the wall it's difficult to push your finger into it (not impossible, just difficult). House is a single story cape, 28x32 footprint, cost about 2200$ for the whole job. Can't even tell they were here. Absolutley amazing they way theu flipped the siding. You hear all these horror stories about dust, dirt etc from blown in. I have NOT had a single problem. Prior to them blowing in I went around to ALL outlets and switches and put those 4cent insulation things in(piece of foam with the outlet or switch cutout in it). Took about an hour for the whole house.
-Brian
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Yet another option, for rooms where plaster, etc. are not in A-1 shape: strip the inside skin as possible, redo wiring (1928? I'd rip it all out) as desired, plumbing, whatever attach vapor barrier, and sheetrock.
Admittedly much more intense than just blowing in cellulose, but, as far as I can see from here, something to be prepared for.
Insulation is not THE answer to interior climate control, either. Sealing is very important, and you can often make big improvements very inexpensively, while you plan/work on insulation. Which then makes vapor barrier very desirable.
Check with GPO (Boulder)- http://bookstore.gpo.gov /. Lots of good publications available there, from gummint research, etc.
HTH, J
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