solutions for old home with aluminum wiring
I'm a first time homeowner so forgive me in advance for my cluelessness.
We bought our home (built in 1970) about a year ago, and didn't really know the significance of it being wired with aluminum until a week ago, when we noticed a plastic burning smell coming from my daughter's room at 3am...and found that the outlet with her nightlite was melting. Fortunately we caught it in time before it fried any of us or caused major damage. We called an electrician in the next day, who diagnosed the problem as a poor connection between the aluminum wiring and the outlet receptacle due to oxidation and/or expansion/contraction of the metal. He "fixed" it by cutting the aluminum wire further back and pigtailling it with a copper wire within a nut filled with nolox paste(antioxidant), and then connecting the copper end to the receptacle. He recommended that we do this with all our outlets and switches. As I've read more about this online, I've learned more, but have also become more confused.
From what I read, it seems like there are a few different options:
1) Rewiring the entire house with copper, which will obviously be costly, make a mess in tearing out drywall, and require at least a week to complete...but seems like the safest solution
2) Pigtailling it as the electrician suggested. However, I've read that either a special purple nut should be used or a specific connector made by copalum (there's a cheaper one made by alumiconn). These options would definitely be cheaper, but I'm concerned about whether it would be sufficient, safety-wise.
3) Changing the outlets/receptacle to ones compatible with aluminum. (Didn't find much info about this.)
I found a variety of opinions on the web. I called 2 other electricians, one recommended #1, the other #2. I wanted to get your thoughts on which you think is the best option, and if you've had any personal experience with this. Thanks for your help!