The contractors have been in over the past week. The mouldy insulation has been removed, as has the base of the shower. (No more ants, yay!)
The vanity and mirror have been removed, along with the wood paneling that was behind the mirror.
All of the areas of drywall that were damaged were ripped out and redone. The skylight above was also drywalled (it was wood paneling before).
Being a reno newbie, there is a lot of waiting around I've discovered. You can't move on to Step B until Step A dries, so you get a head start and start on Step D, but then have to wait because you need to finish Step B and C first. It definitely doesn't go as fast as they show you on TV ;)
The tiling has actually already been started and it's looking great. Once it's done, I'll post an update!