To answer a question from earlier that I missed in this thread...
If you fill the stud cavities with 703 and then just cloth cover, that can work. There are a few if's and buts though.
1. If you do this for the whole room, things will be way too dead.
2. Wherever you would do this (assuming NOT the whole room), you'll be weakening the isolation to/from the rest of the room by losing the mass of the drywall. You'll need to caulk the cavities and consider doing double drywall on the OTHER side of the wall.
Bryan