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You should always hang drywall from the top down. Starting at the top makes it easier to create a straight, tight line between the ceiling and the wall. Any gaps that occur will be at the bottom, where they are easier to manage. You can either cut the bottom piece of drywall to fit the remaining space or cover the gap with baseboard trim. Additionally, starting at the top is physically easier, as you won't have to fit the top sheet into a tight space between the lower sheet and the ceiling, or try to balance the upper sheets on the lower ones while securing them.

According to the EPA, mold grows within 24 to 48 hours if left untreated after a water leak. So unless you notice the leak and stop it right away, you only have a day or so before mold is a real concern. If you don’t notice the leak, it can take about three weeks for the mold spores to become visible. That means you’ve likely had an active mold infection for a few weeks by the time you notice discoloration.

You’ll get better results if you soundproof the whole wall. A hole through which light can pass can also let sound waves in. Acoustical or silicone sealant applied to holes and cracks can block enough sound to make a difference. However, the more layers absorb vibrations and slow or stop sound waves, the less noise you’ll have. 

Water-damaged drywall should almost always be replaced. Not only does it look bad, it’s a breeding ground for toxic mold. Even if you think the area is dry and there’s no active leak, the only way to be sure is to cut out the damaged area and see for yourself.