Magfan, maybe it's is a local thing, but every licensed electrician who has been in the house for one reason or another says that as long as we don't mess with the old romex and don't overload the outlets, the old stuff is stable.
To undertake what I think you are suggesting, which is to change out the old 2 wire romex, would entail ripping the house apart. Most of the old wire is attached to the studwork. As I mentioned above, when the occassion arises, we always try to change over circuits to comply with modern code.
But what about the OP?? I wonder what his situation is. Btw, I'm not an electrician, so take this with a grain of salt, but I don't like the idea of two ground rods either.