What can you do to change paneling walls besides just painting them?
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Well, painting seems to be the first step for anything to change up wood paneling. But there are some amazing things you can do when you paint them.
http://www.craftaholicsanonymous.net/how-to-update-wood-paneling#_a5y_p=4675146
the thinner/ skinnier sheet rock. over the top of it and taped/mudded, primed and painted.
You can remove the panels and hang Sheetrock. You can create panels of cloth to hang instead. You can try wallpaper. You can hang shiplap.
Take the paneling down and hopefully the sheetrock behind it is in decent shape. Then make your decision from there whether to patch and repair or just rip the sheetrock out too and start over.
If you're handy, you can try sprucing them up with baseboard molding in a contrasting color. Larger rectangles go on the bottom, smaller ones on the top.
We used a wallpaper liner on top 1/2 of wall (to cover panel grooves) then applied wallpaper (yes it is back in style) to top half of wall. Hubby put a chair rail molding across wall at chair rail height , then painted bottom 1/2 of paneling. Worked for us!
Wallpapering is making a comeback. If your paneling has the typical lines to give the look of wood planks, you could probably fill them in with wood filler or sheet rock mud to create a smooth surface. Or, pull is off and rehang it horizontally to look like shiplap.
How about something like this done by another hometalker. I personally fell in love with this idea.
http://www.hometalk.com/diy/decorate/walls/boring-wall-into-a-statement-piece-29829077
GL
Boring Wall Turned Into a Statement Piece