What is Behind Wall Number One?

Brian helped me tear a bit of the drywall out today.  It appeared that there may be water damage in the wall.  Good News!  So far everything is looking nice and dry!  We are going to pull out the drywall completely on this wall and in a few patches on the other walls.  I am hopeful that we do not find any more surprises, but I am trying to be realistic too.  I am feeling a little less overwhelmed with this project now that we have made the literal dent in the wall.  Stay tuned...

Here's the "dent" in the wall.  Looking good so far!