I wouldn't drywall over vinyl paneling. If you want to drywall I would remove the vinyl then you can add additional insulation then drywall. Removing the strips and filling the seams is a loser on vinyl paneling. Your filler will show up alot smoother than the vinyl and the paint will make the seams standout. You can leave the strips as is and paint over the vinyl with a quality paint. I have done each way and when I removed the strips and filled in the seams I wallpapered. I don't like the strips myself but the right color paint helps me adjust to them.

Removing the paneling and drywalling is exactly what I was going to try to do - especially to be able to add extra insulation (particularly in the master bedroom) - but I was trying to decide if it was worth it. I think I'll try it both ways (removing the paneling and just painting over the paneling) in different rooms. I really appreciate the advice. Thank you!

I live in a MH. We have removed the strips , filled in, taped, sanded, etc. Done properly, it will hold up. The key with painting over the awful MH printed walls is to use primer before painting them. If you have the vinyl type walls, you can paint those too. Just make sure that you use a primer that is made for that type wall so that your paint will adhere to it properly.

If you have the patience to remove the strips and finish the cracks, you will be very happy with the look of your new walls, but it is a lot of work!

If I were putting new sheetrock over the old, I would not pull the old out.

I painted my kitchen 2 years ago and it has held up really well. I used Kilz (misspelled) primer and 2 coats of kitchen and bath paint. Hope this helps.