Mark, I was waiting for someone more knowledgeable on electrical questions than I to respond on this. But since they haven't, I will give you my opinion. My opinion is that you have a major fire waiting to happen. This kind of wiring is so obsolete that it's scary. Personally, I would not stay in a motel or inn that had that kind of wiring. And if your insurance company knew about it, you would have a problem buying insurance at any price. Please, for the safety of you and your guests, have it replaced. There is no ground with this type of wiring. GFCI's will not work correctly with it and that adds another safety hazard. If there ever is any problem with the paying public, you can be sure that this will be a major factor in the law suit.