|Underlayment on ceiling|
Without tearing out the ceiling, which I did not want to do, the only obvious choice was to cover it up. It's only 40 square feet so it isn't that big of a job so we decided to use bamboo flooring.
The first step is to install an underlayment over the stippled ceiling first to level it out. This is just a thin foam pad that is stapled in place. Cheap and simple fix.