Originally Posted by donf
Peter,
What ever AWG you settle on, it must match the breaker. If you choose to use a 15 amp breaker, then you can use 14/2 AWG. However if you choose to run 20 Amps, then you must use at least 12/2 or 12/3, if two switches will control one light.
My biggest concern here is that you appear not to know exactly what you are doing. Therefore, I suggest that you call several electricians and get bids.
I also strongly suggest that you consider changing out the wiring as well as the main power panel box. I suspect that you have fuses now and not breakers and we know that the wiring is very old and may be split or bare in different places. Given the circuit design, many lights and outlets also suggests that this house is not wired according to the current level of NEC Code.
Please call an electrical inspector or licensed electrician to go over the wiring.