Walls and Ceilings - Stinky family room

I am in the process of remodeling my family room in the basement of my house. I removed the ½” sheetrock that was covered by ¼” of plaster. Needless to say there was a lot of dust. I vacuumed the whole area, which consisted of a 10x10 area of carpet and the rest of room was sheet vinyl. I then proceeded to put up new plastic for the vapor barrier because it is all outside walls in the basement. I started to hang new drywall but I have noticed that the smell of the old drywall and plaster is still strong as I go downstairs. Will this smell go away or is it embedded in the insulation and/or carpet?

The insulation is going to be covered, so I'm thinking carpet is the bigger concern. You're make a mess right now (a big mess if you're like me) and a professional carpet cleaning when you're done would be a good idea.

So do you think since the insulation has a vapor barrier and covered with drywall that it will not stink?

I wouldn't think the insulation would have much smell unless it is wet. Unless there are moisture issuses I would think that most of the smell is just from dust and once everything is finished [after all everything behind the wall is sealed up] a final good cleaning should take care of it.