The moisture problems are easily controlled with whole house dehumidifying. Cellulose is about the best way to 'blow' an existing house. I've done this for years and it's rare that the moisture becomes such a problem... at least in Ohio. You need to retain a certain amount of moisture in a house to ease the heating burden on your equipment as it's the moisture that provides the "comfort" feeling to the human body. And fiberglas WILL wick moisture. Toss a roll into a puddle and check it an hour later. You won't believe how much water it'll hold. Drilling an old house properly requires 'double' drilling each stud run and the use of a 'feel' wire to find framing. If you have other questions, feel free to write me at Geminientp@aol.com