Sharon, trust me, moved into a house with painted paneling. Of course, they were painting to sell, so I had a mess on my hands. If you don't do it properly it will chip if you look at it cross-eyed. I took mine down, repaired the drywall, textured and painted. You will definitely be happier in the long run. As far as colors, what I have done, is "color-matched" to the lightest shade in the carpet. Been very happy with the results.