I grew up in a house that was built in the 70's by my parents with panelling on all the walls. My mother's only/easiest choice after she decided she didn't care for panelling was to spackle the paneling grooves and wallpaper over it. she and I changed out all the papers once every couple of years for variety.
okay... it REALLY!!! depends on the wallpaper.. but preferrably Paint!...
and OMG! BORDERS ARE A DEFINATE NO!!! whoever came up with the idea of borders should be wrapped in a border and tossed in a river lol...
(sorry, if I offended anyone who has borders in their house... I just hate them so much... LOL guess it's cuz every house I've ever lived in has had UGLY borders.. I have seen cute ones but my house had ugly ones and I'd always have to rip them down before I painted and that was a pain in the rear!)