And under the paneling we find...

wallpaper paneling!  
(or is it paneling wallpaper?)

I'm not sure if I should be relieved that there's actually sheet rock under the paneling, annoyed to find yet MORE wallpaper in this house, or ecstatic that the previous owners had the common sense not to paint over this stuff...

What the paneling looks like...
...and the coordinating wallpaper underneath!

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