In our house, the upstairs hallway and one bedroom was panelled. The hallway was then painted (before we got here). I painted the one bedroom after just wiping down the walls with a damp cloth and letting that dry overnight. I didn't use primer or cleaning solvents or sand paper. I used 2 coats of paint and 8 years later, the walls still look great. :)

Of course, I didn't know a thing about painting or primer or any of that when I painted the room....now I'd put Kilz on (especially on in the basement environment) and then paint. :)

Have fun!

Michelle

PS. Don't you think picking out the color is the hardest part of painting? Too many choices out there.......