I went to Home Depot, and saw the underlayment in their plywood aisle that is the same as the underlayment in my dining room. I thought it was called waferbaord, and then had the OSB abbreviations. The underlayment does look like the description you gave....pieces or chips of wood glued together. I have to assume this is waferbaord ( ????? ). So, what would you do....rip it up or lay 1/2 inch or 3/4 inch over it. Thanks in advance for your reply.
John ( your reply was not confusing, and , I am the same John with 2 e-mail addresses.)