Flooring Tile - Tub Wall Tile Preparation

I have a question regarding prepping for laying wall tile around a tub.

I have successfully removed the previous fiberglass tub/surround, and now am left with just the studs and cement floor. I know I have to put durarock for the wall tile to be put up, but do I put the tub in first, or the dura rock first. Does the durarock overlap on the tub edge?--I suppose it should.

Also, the edge of the old tub surround was about 6 feet high, and the drywall above that to the ceiling is still intact, however the edge of the where I removed the tub surround is jagged, should I cut that so it is smooth or doesn't it matter. I guess this relates to the question of how the tiling is done--do the tiles overlap from the durarock that i'm going to install to the current drywall, or do I have to create a nice edge in the drywall?

Thanks much.

You will install the tub shower unit directly to the studs. It is always best to remove all the sheetrock above the shower in the alcove in order to make a smooth installation. After all is removed, you will face all the studs from the top of the shower to the ceiling with lattice strips to bring the depth correct to apply durock/sheetrock to.
Post back if we can help further as you go along.

Thanks Larry.

Just a clarification, I have removed a tub/shower surround (ie. it had the tub plus walls all in one unit), and am planning a tub with tile surround (ie. fiberglass tub, then durarock on walls, then tile up the walls to a point, then drywall to the ceiling).

So, I have the old tub/shower removed and am down to just the studs in the alcove, with about 2 feet of drywall above that is still in tact. I was assuming I could just put on the durarock right up to the drywall, then tile that and leave the current drywall.

Should I install the tub first, then the durarock to overlap the durarock w/ the lip of the tub?

Also, I noticed the water supply is sticking out a bit from the 2x4s. Therefore, I can't just put durarock against the 2x4 because the water supply lines stick out, do I put another 2x4 in there to get the distance correct?

Thanks much.

You could leave the sheetrock intact above the shower head but it should be trimmed smooth, no jagged adges. Before putting up the new cement board put up a 4 mil thick plastic dropcloth for a vapor barrier. Just a few staples to keep it tight until the cement board goes over it.
Also, while the wall is open now would be a good time to inspect those water lines and replace them and the mixing valve if they are old. They could also be repositioned to the proper depth Not a good thing if one gives out in a year or two and you have to cut open the tile wall to repair it.
After the cement board is in, tape all seams and corners with fiberglass mesh tape and a thin smooth coat of modified thinset. This helps prevent the corners from cracking open if the walls are subjected to seasonal movement.

I had the mistaken impression you were installing a shower wall kit, and was concerned with the remaining upper wall. Sorry. I agree with tileguybob with leaving the sheetrock, since you will probably be painting it. Trim it smooth, run your durock up to it and tile away. Seal the bullnose at the top really good to prevent infiltration of water . Also, I agree with retrofitting with a modern mixing valve, especially if yours has any age on it. You will get the benefit of knowing it won't go south for quite a few years, you will get antiscald protection, and a smoother operation. It is at this replacement time, you can address the set back of the unit in relation to your durock.
Good luck and post back if we can help further.