Opinions - Cladding, Tile ,Render

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Hello
I have recently moved into a new house and have found that the vertical tiles on the outside of the house (see pic) are (a) in need of repair (b) have only about 1cm of paper board between them and the plasterboard in the upstairs bedroom. ie no insulation at all.

Therefore, I'm thinking of replacing the tiles and in doing so also insulating behind the tiles. My question is....

What in your opinion is the best thing to replace the tiles
A) PVC cladding - Not sure it will look good on such a big area in white. Maybe the light oak colour would look better (but more expensive) - but still keeping white windows?
B) Could render but then I would not be able to do this myself. Front of house faces south so given that render would not be on brick is there more chance of cracking?
C) salvage what I can from existing tiles and replace where necessary and re-paint. Not really a fan of the tiles, also they leave gaps for wasps and birds (where they have slipped/broken)

I appreciate that there is not one correct answer, its one of choice. But I need help choosing, and would like to hear others views. Also do you think any of the above could affect the value of the house? Not that I am thinking of moving. I just want it better insulated and looking tidier.

Pic of house at this link - probably cant see actual tiles but they are the yellow section on top.

Thanks for your views.

http://img517.imageshack.us/img517/3938/housejr0.jpg

housejr0.jpg
 
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I think pvc cladding will add least value. How about timber cladding?
 
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