I've had limited painting done, and no - this doesn't sound right.

Do you have anything in writing? Do you have the EPA lead certification in writing? It might be worth calling EPA. They are pretty serious from what I hear about the lead contamination issues - and it sure sounds like you have them. http://www2.epa.gov/sites/production...ents/steps.pdf Who have you been working with?

Issues to consider:
How much re-work do you want given the level of destruction they have caused? Would you rather pay less than the contract and have someone else fix it? Would you want them back (without you there?) after this?
What do you want done (if anything) about lead contamination? Perhaps a professional cleaning (steaming carpets, etc.)?
Can the damaged furniture be cleaned, or would it need to be re-covered? They should definitely cover making that right.

What I mess. My sympathies.