Insulation, Radiant and Vapor Barriers - Insulating above outside patio

Hello, I have an outside patio that is covered. Due to some damage I had to remove the material on the ceiling of the overhang exposing the joists. I also removed the insulation that was between the joists. I am ready to seal it back up but would like to know if the entire area should be insulated. Above this area is half interior house and the other half is inaccessible area under a roof. I have made a quick drawing cause it's hard to understand without seeing it. http://users.adelphia.net/~briandick/images/house.JPG , hopefully my artwork will give you the idea. I want to make sure I do the right thing in three areas:

Insulation: I was thinking the area should be separated by adding pieces of 2x8 between the joists and then only insulate the area under the bedroom, but don't know if that's the best way to go.

Ventilation: Not sure what I need to look out for here, the strange thing is the sub-floor extends all the way right to the end of the roof. Should I cut some holes in this to allow ventilation into that space under the roof?

Covering: The exterior will be vinyl but what else needs to be under that if anything, and is it different for under the room as oppose to under the roof?

Any insight you can give would be appreciated
Thanks
Brian

I am new here pehaps I did something wrong, please let me know if I did. Is my question to involved or above the expertise of the members here? Or did I not communicate it well enough to be understood? I was hoping this forum would be a good place to share experiences and get sound advice, based on the overwhelming response so far I am not sure what to think. :wall: