[HayZee518]

There's nothing wrong with knob and tube wiring unless the insulation has deteriorated and the splices are intact. What they did in the olden days is run a large size wire the length of the house and tap off this "main" to the branch circuits with fuse boxes at each branch circuit breakout. The splices were twisted together and soldered then taped. Over time the splices would weaken and come apart causing faults and heat. This would lead to a fire.
Also what you'd find at the older installations is at the fuse blocks (porcelain blocks) would be over fusing - i.e. 30 amp screw type fuses on a 14 gauge line - a hazardous condition. I've personally re-wired 8 houses in Massachusetts with knob and tube and what I found would make any house inspector cringe! Mice seemed to like the jute fiber insulation and I found many runs bare for about a two foot run.