is that the living room walls go up through the attic, where the ceiling goes through the roof and forms it's own roof which is already insulated. I think the walls of the living room in the attic should fall under the same rules as the attic floor. Since Alabama is in the south where we do more cooling than heating; the vapor barrier should be facing out (to the attic interior). But you might also make sure your attic is well vented to help with the heat.