We've been rehabbing our 1930's 4-square house since we moved in here in Western New York State (we get plenty of winter). As part of that process, I've lowered the ceiling from 10 feet to 8 feet in the bathroom and will be in the adjoining laundry room (they're both side rooms and it didn't make sense to me to heat the extra cubic feet). As this essentially creates a 2 foot crawl space between the 1st and 2nd floors, this does bring up 2 questions:
1) Should I be insulating the ceilings of both rooms (and could it be roll insulation) since the crawl space is not heated?
2) Both have an exterior wall, I plan on using fiberglass batts with a vapor barrier between the studs. Can I leave the paper facing exposed above the ceiling or am I supposed to enclose that with wallboard too?