I must have understated the work ( or I'm slow ) . I put in a solid 40 hours. Took a lot of time to run romex up to the main floor plugs . about 5 or 6 of these. Even though they were in the baseboards getting up the romex meant basically pulling the old boxes out and resetting them . Just rewiring the door bell took 3 hours.
Replacing the exposed k&t , and protecting all non grounded plugs with GFCI's was dictated by an insce co. inspector. The house is ~ 80 years old and is a mix of k&t , old romex ( no grd wire ) and newer grded romex wire . I re-organized some circuits , and the associated breakers to reduce loads .The main floor plugs all run on new romex ( including the kitchen ) , but the lights on k&t .Second floor is a mix. The house itself only has a 60 amp service.
The exposed k&t in the basement joists was a bit of a safety issue ( condition of insulation ,connections, seemed OK ) and was an eye sore. A few light fixtures didn't have boxes as well so I guess the inspector didn't like the overall look . Its a lot neater now , and more modern looking. Actual load issues aren't that much changed.
I agree with you that the best route is a systematic switch over to romex , avoiding the old k&t altogether.
A bit confused as to your cost eqaution. Do you mean $50 per individual man or $50 for the two of them combined ? Your calcualtion of $350 would seem to impy the latter. ie 7 hrs x $50 =$350 .
Apparently a complete conversion to romex in the house was quoted as $9000 .00 ( in Cdn funds of course ) . This is just the wiring I'm sure , not all the repair to the damaged walls , where they would have to be broken.
Thanks again for all the advice!