I have a similar situation, but hopefully not nearly as severe or involved. In my bathroom I have 4 -1/4 " tile installed over a plywood subfloor..(Was this the "standard" in condo construction in the 80's?) I definitley have water damage from "someone"...

(no names of guilty parties!) recently repeatedly forgetting to check the shower curtain liner to prevent this. I did manage to pull up the corner tiles and did find the wood was damp, dark, damaged, and smelly. I still have to get at least 3 or 4 more tiles up along the tub, but so far at the
worst point in the corner it only seems to extend out about 5 inches. I also removed a few of the baseboard tiles and there is extremely minimal damage or staining to the sheetrock. Back to the flooring, I scraped up the rotted wood and then used straight bleach on it and dried it with my hairdryer.(hey, I'm a girl...what do I know????

, but it seemed to work!!!!) The sub floor definitley came back to it's natural color, but it is still (1 day later), just a
hair damp, with only a very
slight odor. Nothing ever seemed "mushy or spongy" with the floor. Do i really need to get so involved with replacing the sub floor section..or can I give it more time exposed to dry, and then use some type of sealer or barrier to protect it before I re-adhere the tiles?
I'll also mention that I'm a 3rd floor, one level, unit, and fortunatley haven't had any complaints of ceiling damage from the downstairs neighbor

(thank goodness!!!!)
I was also wondering ...is there a good product to clean the old grout and adhesive from the old tiles?
As you can probably guess, it gets "fixed" by me, or I need to hire someone. I'm really hope this need not be a huge and costly project as I just splurged on new carpet, laminate flooring and tile for all the rest of the place!
Also, this is my first post to any type of forum/chat/or advice, so excuse me if I was too lengthy or didn't follow proper "etiquette". I really need some advice and got nowhere today after wasting over an hour in "H.D." and searching countless other web sites with no clear cut answers or solutions!
Thanks for any replies!!!!!!