Yes 1/2" to 5/8" should be more than enough, if the boards are moving
more than that then the nails will be pulling out. As David said, the
expansion/contraction should be mostly happening between individual
boards. But you need to leave sufficient gap when installing. If it's
extremely humid when you install then you can smack them together pretty
tight, if instead it's quite dry then you need to make sure you leave a
bit of a gap. You also need to consider heating from the sun if you have
large south facing windows, that can cause all kinds of issues, if
nothing else you may get a color change in that area. But you will also
get more extreme movement in the area where the mid day sun will hit
As for which to install first I'd go with the shelves if they are likely
to be a more permanent addition than the floor. At some point the floor
may need refinishing/repairing and it will be easier if they just need
to go around pulling up a quarter round around the edge.
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