bathroom floor and wall tile

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Hi,
I'm doing my first tile job in a small 4'x4' bathroom. The plywood subfloor is in okay shape, but I'm planning on laying backerboard down and then doing a mosaic (~1" tile) on the floor. I guess my first question is what thickness backerboard to use for the floor, 1/4" or 1/2"? I'm also planning on putting tile halfway up the walls. There is drywall on the walls already and I was planning on adding 1/4" backerboard to this and tiling over it with larger ~8" tiles. I'd like to prep both the walls and the floor with the backerboard while I'm waiting on the tile to be delivered. However, I'm not sure how to make the junction between the two different sizes of tile where the floor and the wall meet and therefore how to install the backerboard. Right now, the drywall as it is comes down to anywhere from 1/2 to 1" from the subfloor surface, should I just cut the floor backerboard so it ends up approximately even with the face of the drywall? Then when I put the 1/4" wall backerboard up, it will hang over the floor backerboard by its 1/4" thickness. Are you supposed to keep the wall backerboard off the floor tile by a 1/4" or something? Should the floor tile extend under where the wall tile is going to come down or under the wall backerboard? Sorry, I guess I have a lot of questions...Any comments or helpful suggestions are apprecieated.

Thanks,
Dan