Cover the floor completely with tarps or drop cloths. Cover doorways with plastic to prevent plaster dust from getting into other rooms.
Remove existing plaster from walls. If the plaster has already started to deteriorate, use that location to most easily start the removal process. Begin by tearing away what you can with your hands. Use the claws of a hammer or a crow bar to begin to remove larger pieces.
Remove the lath using a claw hammer or crow bar. This step will take muscle.
Remove all nails that were left behind when removing the lath. The exposed wall studs need to be clear of nails and any debris before you begin to install drywall.
Measure the distance between studs. They should be spaced at intervals divisible by eight. If not, install additional studs to create eight-inch intervals to attach the drywall, which comes in 4-by-8-foot sheets.
Attach the drywall to the walls using drywall screws. Space screws every six inches vertically along the studs.
Cover seams with joint compound using a 6- or 8-inch putty knife. Press drywall tape into the joint compound along the seam. Skim excess joint compound off with putty knife. Allow the compound to dry and apply a thin second coat of joint compound to all seams. Do the same with corner seams, except fold the tape into the corner.
Cover the heads of screws with joint compound. This may require several layers. Allow the joint compound to dry between layers.