These are the personal experiences, which were not as painful as initially I would have thought. Thanks to individuals who have did this before and left notes for others:

• ScottGu (link) 
• Rick Strahl (link)

My personal observations:

1. Manual cleanup and conversion of individual files to be <compile> and not <content> type is not bad, but annoying.
2. Had to go into WAP settings and specify Virtual Path (set it to be the WebApp name).
3. Enable Edit & Continue option