Insulation, Radiant and Vapor Barriers - To blow or not to blow...

Live in the Northeast, have a 30+ year old house(ranch). The attic has either R-13 or R-19 (face down) between the joists (2x6) but some of it is crushed. Our home inspector suggested blowing insulation in to fill in the voids, then laying unfaced batt on top, perpendicular to the joists. I've heard that blown-in will settle, so wouldn't that create air pockets? Would it be better to just blow in a large amount of insulation instead? It's a lot cheaper and we don't use the attic for anything.

2nd Question: The entry to the basement is on the opposite side of the entry to the attic (stairs to the attic run above stairs to the basement.) This was never finished and I think I lose a lot of heat (I do have the attic entry covered with 1/2 inch plywood backed by styrofoam insulation). What would be the correct way to install the insulation and what R-value? Is the faced part to face the inside drywall or the drywall in the entryway...or is there a double-faced batt? I want to do this once and do it right.

Third: Is recessed lighting the only type that can't be covered with insulation? Can regular lightboxes(ceiling lights in the house) be covered? These don't seem to get hot at all.



Thanks.

Nevermind...based on the title I thought this post was about something different :)