Hi there. I am dealing with something similar. I recently pulled off '70's style wood paneling in my family room, and the adhesive ripped a few layers of drywall paper off. What I did was trim off all the loose paper around the tear with a utility knife until it was stuck firmly all around, then I sealed them with a paint-on drywall sealer called Gardz, I think. Then I filled the slight depressions with joint compound, sanded them flush, and then primed over the entire surface with Kilz. Then I used that sand texture that you mix in with your top coat of paint, and the walls ended up looking pretty decent, especially considering how bad they were before. Of course, the idiots who put up the paneling stuck it straight onto the drywall with no priming first, so yours might be easier to repair. But I felt like I should repair the rips in the drywall before I painted, even though I was texturing and they might not show, because it seems like the paint would cover the rips differently, or soak in too much, or whatever. Anyway, I don't know that this was the right way to do it, and it sure was a lot of work, but anything was better than that wood paneling! Good luck!