I also have a home w/water-damaged ceilings (plasterboard, no less). We replaced the roof, now it's on to the ceilings. We thought about using textured wallpaper on the ceiling and painting it, but for those that have wallpapered a ceiling, you know why another method would be preferrable. My husband loves the look of tin tiles, so I found that Armstrong has some great faux tin products, though I haven't tried them yet. I'm sure adding crown moulding makes the install easier since the edges don't have to be perfect. Has anyone out there tried this solution?
Here's the link to Armstrong's home page, and a product I may try: