Intro
Older homes, particularly those with plaster construction, may have cracked and wavy ceilings. If you install drywall directly to this surface, you'll still have a wavy ceiling minus the cracks. That's some improvement, but not enough to justify the effort.
The real solution involves the installation of furring strips -- either wood as shown here or resilient channels. Find the lowest spot on the ceiling and shim all the furring to that point. It's not as difficult as it sounds. The procedure shown here is a systematic method for locating the lowest spot on a ceiling, then installing the furring strips.
You may need a good number of shims to complete the furring strip installation, but you can easily make them at home from scraps of plywood and hardboard.
Checklist
Time
The time depends on the condition of the existing ceiling. For a room that measures 10x12 feet, you and your helper should allow 4-6 hours to check the ceiling and install the furring.
Tools
Stud finder, hammer, ladders, two chalk lines with different colors of chalk, mason's line, level, line level
Skills
Measuring and accurate marking, leveling, driving fasteners
Prep
Clear the room, and mark the location of all ceiling joists.
Materials
Shims, furring strips, nails, screws for installing strips