Well, gents - we took the plunge and slapped some mud on the walls this past weekend! Starting on Saturday AM, I ripped down some furring strips and other scraps with the table saw to fill in the gap between the bottom of the 'rock and the floor - that took a while since the floors aren't completely level...
Even before we opened the bucket of mud, we each had a beer - I had 3.

We started out by covering all the screws and then we tried our hand at taping a horizontal joint. I used the lightweight mud straight out of the bucket (Sheetrock brand) and the next day, I had to tear out about 3/4 of the joint because it looked like it lifted out.
I bought a 4. 5 gallon bucket of the normal weight mud and mixed in slightly less than two caps full of some stuff called 'No Pock' I ran across at Menards.
Link... This stuff seemed to really help bury the tape - which is the biggest PITA of this whole process of taping joints. If you slap down too much mud before applying the tape - you run the risk of getting bubbles in there. If you don't have enough mud... it doesn't stick.
I'll have to take some pictures of the progress, but we got almost all the joints completed in the bedroom and the hall. My wife and I worked as a team - she put down the 1st layer, I layed the tape and smoothed it out and she covered it and did the final works on the 1st coat. So far, this system seems to work well.
Thanks again for the advice, guys. Once this stuff fully dries we get to see how much of our work has to be redone. :-laf
Cheers,
Matt