[ptspurlock]

The large sections the floor was removed in could be used to save you loads of labor installing 11/2" boards.

I would cut the nails flush on the bottom with a metal cutting blade attached to a side grinder.

For removing the substances on the sides, you could use tongue & groove router bits like these on Amazon...http://www.amazon.com/Freud-99-036-Adjustable-Tongue-Groove/dp/B00006XMTT to clean and dress up the tongues & grooves. Just make sure the nails are removed.

For installing, you could rent a power assisted hardwood nailer or attach with finish nails, making sure the nails are set below the surface with a nail set.

For refinishing the wood surface, you could use the Diamabrush hardwood prep tool like these...http://www.signature-concrete-stain.com/refinishing-hardwood-floors.html to prepare(remove the varnish down to clean wood)mounted on a low speed floor buffer.

See the YouTube video of this process here...http://www.signature-concrete-stain.com/refinishing-hardwood-floors.html

The hardwood prep tool will not remove the coating all the way to the wall. You will need to install a 1/2" base along with a 3/4 " shoe mold. If the prep tool exposes any nail heads, just countersink the nail head below the surface and fill with the appropriate filler and sand.

Once the wood surface is ready you can apply a stain of your choice, or just apply a clear polyurethane top coat.