Thanks for your quick response. Some of it may be helpful some of it confirms my worst fears, which is having to resurface the walls - a much bigger job than I'd bargained for.

Sophocleese, I'm heading off to the hardware store and will start with the wallpaper paste remover - if that fails, Matt R. I'll try your tip with the windex. However, having experience trying to undo what our previous owners did, I'm afraid it will come down to a choice of panelling or 'mudding' the whole thing.

I'll let you know what happens and thanks again

Heather