How can I fix the crown mold and baseboard of my home walls?

When I built my house (11yrs ago) to save money I enlisted the help of friends to paint. My carpenters took that as they didn't need to "help" finish anything other than drywall. My crown molding, door facings, window facings and baseboards look horrid!!! We really didn't know what we were doing when trying to cover nail holes and when caulking. What would be the easiest/best way to redo all these areas? I'm still no painter (hate the word lol) but after all these years looking at it; I'm disgusted. A friend suggested I sand all areas and refill holes and repaint. Would that be better than replacing the main living areas? And how is the best way to keep dust down to a minimum?

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