Best value ($ vs R) home insulation + squirrel troubles.

I'm remodeling a older home. squirrels have been living in the attic for the last 10 years or so, I'd guess. I have never seen such un-nessisary destruction in a house. The previous owners had let the squirrels chew just about through the rafters. I now have to drop the second story ceiling, and install new timber/drywall and re-insulate the attic while I'm up there. The smell of squirrel urine is strong in the attic, and it is some times noticable throughout the house. What can be used to clean up the squrrel urine, and after that problem is taken care of, what's the most economical way to re-insulate the attic, blown in insulation, or fiberglass rolls? I'm doing about 900 square feet of area.
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