Walls and Ceilings - crack in walls and nails protruding

Help, I am new at doing home improvements. The house is over 40yrs old. The walls are sheetrock and the cornor seams are cracking and the nails are protruding. When do I start and what will I need?

Materials:
Sheetrock mud, paper drywall tape, drywall screws, and fine sandpaper.
Tools:
Hammer, drill with Philips screwdriver head, 4" putty knife, utility knife, and 12" drywall blade.
Corners:
Cut the loose sheetrock and tape out of the crack.
Fill crack with mud with the putty knife, fold the paper tape into a V, and smooth it into the mud.
Add a layer of mud over the tape. Let dry overnight.
Lightly sand the dried mud smooth, and add a third layer, feathering the edges out with the 12" blade.
Let dry overnight and sand smooth.
Popped Nails:
Dimple the nails back down without breaking the sheetrock or paper.
Overlap the head of the nail with the head of a sheetrock screw.
Mud the dimple with the putty knife. Let dry overnight and sand.
Prime the new mud areas, and repaint.
Good luck!
Mike