I too have an old home with linoleum sheets running around the very large kitchen. A half-hearted attempt to remove the wall covering convinced me that this would be a BAD idea.
Looking for some new ideas. The kitchen is very large, and the linoleum is much higher than a "typical" chair rail-- about shoulder height. I am considering painting both the linoleum and the wall above and simply slapping a "chair rail" around the border where the two meet. I am also consider framing in blocks with wood slats. The room is certainly large enough to put up wainscoating, but I want to keep this project low stress and low budget.