This is the state of our house when we bought it. We've been working on it since 2007. Yes everything was covered in wood paneling and peach. Turns out that wood paneling was covering up cracks in sheet rock, which is a sign of foundation shifting. I often yell Roger's (previous 'handyman'- never left the 80's owner) name out loud. It's unbelievable what this man has achieved. Not in a good way.
Since the peach paneled 80's house we've since redone the walls in this half of the house. I'll take matching photos so you can see.