If you don't want to invest in new drywall/sheetrock and having paneling, here is a straight forward DIY option if you dont mind a textured wall. Also a good option if you have a heavily damaged wall.
These photos are from our cottage on the lake .... I removed all of the molding that covered the seams of the wall board. Then with a bucket of ready made drywall mud and a 6" knife I applied it all over the walls. No need to be perfect and you can apply it as heavy as you want. I did fill the seams of the wall board first, then just started applying throughout the whole room - getting as close to the trim as possible to give a natural look. Give 24 hours to dry completely before painting!
Then paint (see staged photos). Then I applied a translucent glaze that I purchased at Lowe's. Finished product is kind of tuscan looking stucco! Affordable and easy .. and its a pretty good workout for your upper body! :)
Maybe I can help clear up the "glaze" question. Glaze can refer to a product or a technique (glaze or glazing). Susan, the glaze you are using is a clear glaze which is added to extend working time and to make paint more translucent and easier to work etc. You can also purchase ready made colored glaze. Once you have added the 'clear glaze product' to your paint you have, in a sense, ...»