Yeah, something wrong with that inspector. I have no idea whether I need to pull any permits for what I'm doing, and hadn't thought about it until I was halfway done. The kind of work I'm doing will never raise any eyebrows, anyway, so I'm not worried about it. Of course, the skeletonized room faces the street, and the blinds came down with the window-molding, so let's hope no one gets nosy.
We have just purchased the house, and can't really move in until the bedroom is finished. So, I will just finish the walls, and leave any upgrades to the service panel for later. Having seen the inside of the fuse box, now, I'm not eager to do any work in there at all, so I will be putting the new lights and receptacles on the same old circuit. However, the wiring behind the new walls will be new, grounded 12 guage, and the receptacles, switches and boxes will be new and securely mounted. The wires before were the cloth-insulated knob and tube that cfabe talked about. The house is about sixty years old, and the disclosure said copper wire, but some of the wire I've seen looks like aluminum.
The cool part, however, that I really like is the second set of wires for the ceiling fan, with a sliding dimmer and sliding fan switch that regulates fan speed. And the new, sturdier box to mount it all on. Having access to the basement and attic is a very good thing.