+1
If you do it yourself, you can pretty much do whatever the hell you want without a permit - for better or for worse, of course. If you hire someone with a license and they have to pull a permit, you've also got to bring things up to current code. So, for instance, I got a quote on fixing a few electrical things in my house, and the guy quoted me to basically bring the whole effing house up from 1956 to 2009 code - for the princely sum of $5,000. In reality, I need to tidy up a few connections in the kitchen, add some 3-prong wall outlets, and upgrade the panel in the garage. I can get all the stuff I need at Lowe's for under $300. I call BS on permits...
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As far as the three prong plugs go, you may not have the ground wire to do that. In 1956, romex was still fairly new and possibly cloth wrapped. Some of the houses were still using Knob and Tube wiring and BX metalic flexable conduit. I am not quite sure when they started with aluminum wiring, but that may be another thing to look out for(use the proper plugs or this could be a fire potential). In any case, even if it was wired with Romex(NM) wire, the insulation is probably brittle by now. Be careful what you do to it.
Go with a Square D QO series pannel. I would recommend a minimum of 30 spaces. I could see a rewire getting real expensive and here is why. The 1999 code required arc detect($35) circuit breakers in bedrooms. In kitchens and dining rooms they wanted two GFI appliance circuits in each room. Bathrooms were supposed to have their own dedicated GFI recepticles for hair dryers. Garages and outdoor recepticles were also GFI protected. Then they want range and dryer plugs to have 4 wires now instead of three(The additional wire is a neutral).
Black and Decker makes a good home repair book series for wiring and plumbing if you want further information.
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