Shingles under drywall...should I remove them?


Hi all,
I recently bought a house built in 1935 and I'm just starting to get to some renovations. One of the previous owners had build a small extension on the front of the house, creating a 4' x 8' entry vestibule. Three of the vestibule walls are external, and the fourth is the wall bordering our living room - this used to be the original front of the house. The vestibule was finished with drywall, and there was a bunch of water damage in one of the corners (from an old, since- repaired leak) so we've decided to gut it and re-do.
When I removed the drywall from the wall that borders the living room, I found that the original wood shingles were still there - no furring strips or anything installed - the drywall was just nailed right into the shingles. There is even a hole where the original front door light was hung - wasn't patched or anything!
Anyway, wondering how best to address this without turning this into an impossible project. My instinct tells me to remove the old shingles and then do the drywall, using furring strips or framing out a tad if I need to make up for the thickness of the shingles. Is rocking over shingles like that an acceptable building practice? If it is, screw it, I'll save myself a bunch of work and go to town!
My worry with removing the shingles - What about the other walls of the vestibule? I imagine the corners are attached to the shingles somehow - how to remove the shingles when they are attached to the other walls?
You can see pictures of what I'm talking about at
http://i522.photobucket.com/albums/w346/lootcorp/IMG_1213.jpg
http://i522.photobucket.com/albums/w346/lootcorp/IMG_1214-1.jpg
Here's the (external) wall to the right of the shingles - check out the wallpaper!!
http://i522.photobucket.com/albums/w346/lootcorp/IMG_1208.jpg
Any advice is greatly appreciated!!
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I'd screw the drywall right to the shingles just like they had it. Obviously, it's not a problem.
s

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On Aug 11, 6:50 am, "Steve Barker DLT"

Yep. As long as it can be applied to give a level surface it doesn't matter.
Harry K
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Shingles are not very strong, easy to cut with a saw or even a knife. I doubt the side wall is attached to the shingles as they will not hold anything up, the nails probably penetrate through into whatever is behind the shingles, or the house frame. I doubt there is plywood behind the shingles, probably either boards or nailing strips. Just pull the shingles off and cut them with a saw or sharp knife where parts run behind the sidewall framing.

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Thanks for the replies, everyone
EXT - I like your answer - I feel like leaving the shingles there would be lazy...sure, it might not hurt anything, but if I'm going to go through the time and expense of re-doing the vestibule, I want to go the extra mile and do it right. Besides, that will give me a chance to explore the wiring and framing of that wall...
What are the prevailing thoughts on vapor barriers for insulation in the Northeast (Norwalk, CT, to be exact) - Most things I've read seem to encourage the use of vapor barriers between the insulation and drywall... However, I also read that in climates where there is a hot summer and cold winter (sounds like where I live), it's better to let the moisture pass back and forth, so no vapor barrier. Who's right?
I have 2.5" of room to play with in the exterior walls - trying to decide what kind of insulation to install. Foam board, batts, etc...
Oh - one other question - on the exterior walls, now that I've taken out the old drywall and loose-fill insulation, I can see some light coming through from the outside...should I seal these small cracks/ holes with caulk, or leave them be?
thanks for all the help!
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