I'm always so carefree with wearing protective gloves and masks - so I was thinking that if fiberglass makes my skin itch, then what do the same particles do inside my lungs... So, basically, I'm paying the extra price because of my stubborn habit of working barehanded =)

Your plan with your floor sounds all reasonable to me. Styrofoam is commonly used in floors, so I'd guess it will work the way you plan.

Ps. as you might have noticed, I've again been lagging a bit behind following your video blog. I hope I can catch up the coming week!