Sorry for the delay, had to try and get them off my photobucket account that is now slow as hell to use. I think if I was doing it again i'd remove the old plasterboard and then after adding the insulationboard between the timbers i'd use some insulation backed plasterboard for the final layer. That way the timber doesn't create a cold bridge. Also the insulation backed plasterboard has a vapor barrier integrated. I think someone actually suggested this method, but after I had already done the job lol. It has been absolutely fine though doing it this way, with no damp or anything *touch wood*.
I can't believe they designed houses so poorly when this was built. Although It was a council house, so they probably just wanted to do it as cheaply as possible. I know what you mean about the corner rooms being the worst, this room was freezing before doing this. The radiators are also below the heat leaking sloped ceiling, so a lot of the heat is escaping straight through the roof.
We also had cavity wall insulation done around the same time which also made a small difference. The cavities are only thin in this house as its random stone, so they pumped in expanding foam. that has been good so far as well with no damp issues some on here warned about. The wall on the left was actually black with mold before I started and the wall paper was wet through due to the damp, but 4 years later after the insulation its dry and no mold, so its definitely worked.