Hi all. My house was built in 1965. About 10 years ago, I mistakenly listened to and took the advice of a couple different people. I peeled up the paper backed insulation in the attic and put in a plastic vapor barrier rolling it over and stapling it to the rafters. I now have no seal between the walls and ceiling. Is this a big problem other than some heat loss?

A few years ago, I painted the interior. The Laytex paint I used is not sticking to the old, probably oil, paint underneath. The drywall nails are also showing their ugly heads. I was thinking about tearing out all the old drywall, replacing the vapor barrier and redoing the drywall. We do asbestos removal at work so I had the drywall compound tested. It came back 0-10% crysotile.
Now, I don't know if I should to the asbestos removal thing, or just cover it all up with a new layer of drywall.
Any advice?