Thank God the House Didn't Burn!!

Is this that remodeling curse? You try to fix one thing and the whole room goes to hell? I think that's what happened here. All we wanted to do was refinish the floor and wait on everything else for a little bit...but nothing is really that easy is it?

I wanted to do was take a pic of the plaster and the outlet. I got down on the floor and noticed water. A lot of it. (This is from after I pulled off the paneling and a ton of paint) This is the up close picture. The picture does not do it justice. There is water dripping from the A/C unit...and that made the paneling soft, the plaster gooey, the paint bubble, and a puddle on the floor.
And we are lucky...the water was dripping on this outlet. You can't really tell, but the plastic over the wires is wet, along with the wall all around it. I think I may have saved our house from burning down! I originally wanted to take a picture of this because we discovered that the wiring was ran after the carpet was laid (see the gap?). There was a "premium tackless" strip under the outlet that was actually nailed directly under it.

Now I am really p.o.'d because I had to peel the paint off the baseboard and window sill because it had water trapped under it and I'm freaked out about mold. And the paneling had to go too. So now I have this really bad spot in the dining room. We hadn't planned on doing any stripping or removing the paneling just yet, due to a lack of money. And the fact that while it's not our taste, it didn't look that bad. We may just temporarily fix it for now. After the water dries.

For the record...this a/c unit was installed properly and was working great until sometime tonight. It was all dry this afternoon. (I know it was because we were looking at the previous water damage and talking about how we think it was from a window unit, and it was dry at that time) I don't know what happened to it...I'll let my hubby figure that out when he gets home from work.