I should have made it clear that i shut off cir 1 and 4 as soon as I made this discovery on my initial inspection. I had been mapping out the circuits with my dmm when I discovered this issue. I made my own plans to scale on graph paper marking each device and its circuit.
the reason for moving the panel is because the service drop now goes over a 14' span of the roof installed on a 'new' patio. The location chosen is a clear shot. I figure I might as well upgrade the existing 50a panel to 200a so I can include yard accent lighting and power to a workshed in the back. I figure 200a gives room to grow. I want to rewire simply to avoid whatever craziness is up in the crawlspace that i can't see and include a device ground as the current system is hot/neutral 2 wire. I figured it might be easier to run new circuits and cut patches to make runs. That way I just leave the old stuff alone and just have it completely disconnected.
I have been showing my folks this thread and they now agree that I may have had a point.
LOL, wow. We may be related... My Dad's Uncle is the 'other electrician' in my situation. For some reason he was trying really hard to convince my Dad I don't know wtf I'm saying and everything is ok. He was so adamant I finally had to ask here if I should hang up my hard hat and work at Subway...