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Yes, if there is mold in your drywall mud and you then use it to build walls in your house—or if mold develops in your set drywall, like it can in hot and humid areas—it can lead to illness. Mold in your drywall (or other parts of your home) can make existing respiratory conditions or allergies worse, and the effect can be more intense for those who have existing health issues or compromised immune systems.

This depends on how much plaster is applied and in how many layers, but a decent estimate is around 150 square feet. If you are applying only two coats on a small wall, there is a chance you may only need one or two gallons for the entire project. If you are plastering a large living room wall with high ceilings, using one of the more involved techniques–like Scagliola–that requires several coats, expect the project materials costs to add up quickly. 

You can put drywall mud over paint to even out the surface or entirely resurface it. Sand the surface with 280-grit sandpaper, vacuum the debris and dust with a shop vac, and clean it with a slightly damp cloth. Allow the surface to dry. Apply drywall primer, especially if you’re skim-coating an entire wall. Apply the right type of drywall mud over the surface and smooth it with a trowel. Allow the layer to cure fully, then sand it before applying another layer or painting it.

In most cases, no, you won’t need a permit to replace drywall. If you’re changing the floorplan of your home by adding or removing walls during the drywall project, then you might need a permit, but replacement or repairs usually doesn’t require a permit. Your drywall professional should be able to confirm whether or not a permit is required for your project. If it is, it’s likely to add between $50 and $150 to your total cost. Keep in mind that you will need permits if you plan to install new electrical wiring or plumbing lines behind your new drywall.