How do I fix up the walls of a 1963 bathroom?

Sorry to hear that Sheryl. Unfortunately, it sounds like you might have to remove the wall(s) altogether due to the mold. This may be due to a lack of ventilation (exhaust fan?) Or a possible leak. Paint will not adhere to wet plaster. You may want to check with a professional who could give you a free estimate. Good luck.

First you need to fix the source of the mold. It sounds like dampness may be behind that wall. The peeling paint and mold point to a dampness issue in that room. You need to find the issue and fix it before you continue. That being said, once the issue is fixed, I would steam or sand off the peeling paint. Be sure to wear a face mask for dust if you sand...you may want to wear one for the mold as well. Are you keeping the tile? I would at least replace the moldy piece of wall board. then paint in whatever color suits you. If the fixtures are useable I would just clean them up and leave them.

Hi. Paint peeling. A real indication those hot steamy showers aren't going out anywhere. If the mold stain is on the ceiling, make sure the problem's been fixed. If it's one section of the wall, cut that section out and see if there's more hiding in the walls. If not, you can patch that one section. It's important that you install either a venting system or always, always open the window after the tub is used. If you don't want to remove the toilet, there all sorts of things you can put int the tank to reduce the water (even a brick or two will work). If you just want to gut and start all over again, a remodel is typically between $10,000 and $25,000 USD not including any major mold issues. Good luck.