Original wallpaper was vinyl but splitting at the seams and curling up. There was a leak behind the fiberglass surround under the shower head.
Underneath was a tile looking hardboard that was put on top of a mesh (You can see the concrete mix oozing through the mesh in the wall opening for the plumbing. It looked like some huge beehive. It was green and had lines scored in it to look like tile. 
We stripped the wallpaper, tore out the carpet and ripped off the fiberglass surround. (We're putting ceramic tile on the bathroom floor, but that will have to wait until next summer.)
We tiled the tub surround with the Lowe's field tile and used an inset diamond piece near the top. We tiled all the way up to the top of the tub because I like the way it looks better than the tile stopping with just a foot or so to go to the ceiling.
We kept the countertop, cabinets and lighting shelf lighting because they fit the house and are so well made.
The old floor is some type of tile that is glued to the concrete slab. I hope I can tile right over it, but I'll have to do some research and see. We kept the old fixtures, because we love them, but we did replace the cushion toilet seat that creeped me out. It's like sitting on something alive. Plus it's hard to clean.
AFTER:It feels cleaner and brighter.
We painted the whole bathroom--walls, ceiling, molding and trim, too--in Valspar Ultra White Kitchen and Bath Enamel. We spray painted the shutters blue.
We used Lowe's cheap gloss white field tiles and put in some spa glass blue tiles for the backsplash. The backsplash used to be wallpaper with a rectangle of plexiglass over it.
The plumber charged $400 to replumb the tub and change the fixtures (which I bought from Lowe's)that were leaking.
Next summer we'll put up a ceiling-hungshower curtain, add a handheld sprayer, and tile the floor.
