I have been presented with this dilema many times before. I have thought and thought and have not come up with an "easy" way. As I see it, you have three choices. Leave the existing wood floor in place and add plywood to the other areas that will get the new flooring so as to have an even substrate. Leave the existing floor and don't add plywood but you will have a ramp up and down at the transition between heights. Esthetically, the least favorable but the easiest and cheapest. And third, remove the existing wood floor. If nailed down, not too bad. If glued down to plywood, a major bummer. You will tear up the plywood in removal and then need to fix it or replace it. All very time consumning and expensive. That is why I always suggest installing an underlayment over a wood subfloor when gluing down a hardwood floor. Read this:
Quote:
When gluing down an engineered floor over a solid lumber subfloor, you will need an underlayment of 3/8" plywood, at least. When gluing down to a plywood or OSB subfloor, many are tempted not to use an underlayment. I prefer to use a 3/8" plywood underlayment over a plywood subfloor when gluing down a wood floor because if the floor needs to be repaired or replaced, it is easier/better with underlayment than with the subfloor.
I hope this clears up many of your questions regarding installing wood floors over wood subfloors.
Regards, Gary