Retrofitting wall insulation on 1930s cottage

Q: We have a cottage built in 1935, and we want to insulate the walls and possibly the floor. Some contractors say I have to remove the siding, install fiberglass batts, then replace the siding with new material. Another said I could drill holes in the siding and put in foam insulation. Another wants to use treated shredded newspaper. I would be most grateful for your opinion. --Lucy D.

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