I apologize for posting this picture in a new message. This is he finished room taken in the same area as the original photo.

That is so true, Faron! Sounds crazy but exactly what should have been done to solve the underlying problems here.

I noticed these comments in your post:
"I sanded all parts of the walls and put a light layer of joint compound on any areas of the original brown paint where the yellow was chipping off."
"If I get my fingernail under in the cracks under the paint I can chip the paint off with some effort. What I see underneath is the original dark paint."
I'm wondering (since you said this was just patches here and there) if the problem was in the joint compound. Perhaps it didn't dry enough, absorbed too much water when you wiped down the walls and didn't dry enough after that, etc. (Or, pardon me, just a poor quality compound.) If that was the case then it might be a more reasonable/easy fix than reworking an entire wall depending on how extensive the patchiness is... . ?
Ging

When I started this project, being a complete rookie, I really thought there had to be a way to do it and do it correctly. I am not sure I even contemplated taking down the sheetrock and replacing it. IF I knew this then I dont think my hubby would have allowed me to redo the room. Not sure we could handle removing and replacing and mudding correctly and not sure if we could have afforded to hire a professional to do it. Basically, when I started this project I had a lot of time and not a lot of money.

I am leaning toward the fact that it may be residual paste. This seems to make the most sense to me. I have attached a picture of a spot that I chipped off with my fingernail. You can also see the small cracks in the paint that I haven't chipped off yet.

I did another inspection of the room today and notice that the chipping is not extensive. I can only find it in a couple of spots on two walls but I want to fix this.

The joint compound I used at the time was DAP from Lowes and it wasn't old that is why I am leaning toward paste residue. And I mudded a lot of spots before painting so I wouuld assume I would have A LOT more chipping spots than I do if the compound was bad - just a thought.

Since finding these cracks I was concerned that I used the wrong combo of paint and primer. I was also concerned with not knowing exactly the composition of the yellow and dark paint already on the wall that I painted over. I didn't know if it was oil and by putting the type of primer and final coat that I put on made it crack. This is why I mentioned when I flake away the chipped parts I see the dark paint which I believe was the original paint put on the drywall.

If the problem is residual paste how do I go about fixing? Scrape away chipped paint. Do I mud the spots and primer them with a different primer such as KILZ? And then add my same colored flat paint again - conerned about seeing patch spots.

Thanks all.

You'll need to scrape off the loose paint and sand the edges. Then there's a special primer called Peel Stop by Zinsser that you can use to try to lock down any remaining problems. It seeps into the fine cracks and such to glue it down. Then you can mud to even out the surface nice and smooth again before painting.

Thanks Snookums2. I see you created a post about Peel Stop in Novermber 2012. I was wondering if you could tell me how your walls are holding up after the application for the Peel Stop. Also, I noticed you said you couldn't find the product locally. From where did you order it online?

Do you or anyone else have any idea what that dark paint, which I think is the original paint to go over the drywall, is composed of? I am curious. It is my understanding that since I did not remove all of the residual paste the BM Coronado Primer I applied reactivated the paste and this is why BOTH the final cote of BM Regal AND the primer are coming off in the chips? Is this correct? Why isn't the original paint that was the first put on the drywall not chipping too? Is this because the glue was actually on top of it?

Also, this is probably going to be anybody's guess, but what are the chances, now after a year since it has been painted, that MORE chipping will occur than what I already have?

Thanks.

I had to order it online. Home Depot had the best price and free shipping. With a lot of work, I did eventually come across a can or two locally but they wanted almost $40. HD was $20.

I'm still in process with my walls so can't report back. I think it will take some time to see how things go, I expect the years will tell overall.

One odd problem I'm having on a wall that was supposed to have been Gardz'd is that when the carpenter caulked a small run of baseboard it pulled away months later taking the paint along with it! What a mess that will be if it happens everywhere. Gardz (also Zinsser) is similar to Peel Stop but not as heavy duty and serves other purposes too. The workmen had done all repairs/mudding before priming with Gardz. Then a quick coat of paint was applied.

For the caulk problem, I will be switching to a good elastomeric caulk (Dynaflex 230 or BM crown and trim, both Class 25 for 25% movement). I will cut in with a coat of Peel Stop before caulking. We'll see! What else can I do? The builder did a lousy job with the first coat of paint which is 40 years old now and has been failing recent years.

Gardz does not reactivate paste. Peel Stop probably does not also. It would have been a good primer choice for you. I was told by Zinsser they are very similar but Peel Stop works better to lock down failing paint because it's glue.