It’s difficult to say whether your problem is pests or plumbing – or a combination of both. Hanging insulation is often a sign of rodent activity, which could also account for a weird, moldy odor. I know two guys who are each (IMO) the most awesome in their respective fields:
John at Adept Pest Management
Joe the Plumber
The specialty of each is pretty obvious. Sorry I don’t have contact info, but both have been reviewed – and raved about – on WSB, so a quick search will probably bring up the details. Good luck!