Re: ceiling sheetrock water damage
You can use whichever tape you're more comfortable using. I prefer the mesh tape over paper for flat work, however you really must use paper on corners. You can use either the premixed mud or the dry, it's personal preference. The key with the premix is to mix it up well in your mud pan before use OR dump the contents into a 5 gallon bucket and whip it up with a stirring wand and drill. Premixed mud will work much more easily once whipped, and you can even thin it slightly if necessary. The only real reason to use the powdered form of drywall mud is if you're under time constraints and you want the layers to dry faster, then only mix what you can use in a reasonable amount of time (one pan at a time, basically ). I always follow "hot mud" with premixed topping compound because topping compound is much easier feather and sand once dry.
I suffer from CDO ... Its like OCD, but in alphabetical order, LIKE IT SHOULD BE!!!