When we eventually tile the bathtub surround, we will want the wall to be as flat as possible.  So before putting up the tile backer board, we had to make a few adjustments to the studs by adding some furring strips. 

We are using a product called Schluter Kerdi-board for the tile backing.  It is waterproof, lightweight and easy to install, plus it has a grid printed on the surface to make tiling easier.

We are adding a small niche into the end wall.  We have already been using the tub.  The thermal hydro massage feature is delightful.