Moved into a1930's rental and have been dying to paint the bathroom. There was a wallpaper border around the ceiling that was visibly peeling, so I thought, no sweat, I'll take that off and paint. Ha! Not so fast!

Yes, the border peeled off easily -- to reveal another border firmly stuck on the wall. So I've been applying goop and scraping, so far so good. However, above the tub/shower area, the paint was rubbery and peeling, so I began to peel it off. I thought a little would come off and I could sand the transition edge smooth. Soon it was coming off in pieces up to 10 inches long. The wall underneath is painted a dark green and is firmly adhered to the old-style plaster wall. Photos:

The questions: How far should I go with the paint peeling? No way am I peeling the entire bathroom! And what steps are required to be sure my new latex paint will adhere and cover? It's a soft yellow.

I repeat, this is a rental, and I'm not going to spend beaucoup bucks and time on this.

Thanks for any help.