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This is the first time I ever did anything like this, so please feel free to sling all the comments and suggestions.
I tore out the floor and drywall under the sink . Photos show various views. Mold is on the front and also on the back of the drywall up to about 12 inches from the floor. Above that I don't see any. My thought was to tear out that whole side of the wall up to the bottom of the window (42 x 96) and replace with a new piece.
The floor looks pretty clean - no mold that I see so far. So I'm planning to tear up all the water damaged pieces and replace with concrete-board / wonderboard.
FYI, photos posted at alt.binaries.pictures.woodworking. Here is a brief description of them...
view1 - view of all damaged wall/floor with floor removed
view2 - close up where wall meets floor
view3 - wall with some drywall removed
view4 - piece of drywall swung out from wall. clean except for what looks like powdery white deposits running horizontal and vertical. they don't line up with the pipes or anything - maybe it's drywall material coming thru?
view5 - close up of view4
view6 - piece of drywall near floor - outside
view7 - same piece - inside
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