Our whole house was a mess when we bought it. Nothing had ever been updated properly. The bathroom was our first major interior project and not being very handy, we hired someone to do it for us. It was completely gutted because there were rotten joists in the floor and there wasn't anything salvageable in the room. It also had a very cramped feeling, so we changed the layout at the suggestion of our contractor.
We purchased an old sink and tub in Baltimore, and the rest is new. We kept it very simple -- we don't have lots of stuff, so the storage is limited to a medicine cabinet and two niches on the wall behind it, using cedar left over from our backyard redo for shelves. It's now a much happier (and safer!) space.
For more photos and details, check out Megan's blog, Urban Tastes.
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(Images: Megan Adams)