> There is this big hairball of under-tested code. (Nothing new here)
> So the question is, which to tackle first - unit tests, or functional tests.

Generally, I agree with the earlier responders endorsing your approach
and I've little to add to their thoughtful remarks.

Perhaps the major benefit of unit tests is that they improve design:

 * writing a test first forces you to focus on interface
 * hard to test code is often hard to use
 * simpler interfaces are easier to test
 * functions that are encapsulated and easy to test are easy to reuse
 * components that are easy to mock are more flexible/extensible

That is, unit tests provide more value for new development work.
If you already have a big ball-o-mud, unit tests provide less value.
The time to write unit tests for an existing system, is when you
choose to rewrite a component/subsystem.

This sort of question has been asked a few times at Perl monks.
See, for example:

 http://www.perlmonks.org/?node_id=355203
 http://www.perlmonks.org/?node_id=560614

> Why am I wrong?

You're not. :-)

Cheers,
/-\


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