Redoing my Room: Cost and Other Questions?

You have a lot of options here. You could paint the plywood around the edges and lay down an area rug. They are about $59.99 at our local Walmart. If you have an Ollie's in your area you may find something cheaper.I would caulk that trim to keep the spiders out, and then paint it. Since you don't know if this is lead based paint I do not recommend sanding anything. You shouldn't need paint thinner or primer. If the walls are semigloss paint you will have to use a flat paint or a primer first, otherwise you can just wash the walls and paint them. I wouldn't try to strip anything. Instead of blowing the budget on stripping and redoing the floors I would go with the area rug and use the extra money to buy a really cool lamp or piece of artwork as the main focus of the room. Also, you get to take them with you when you go.