I have 2 rooms in my 1927 bungolow with the same problem, the paint has flaked considerably. I originally planned to paint them, but I've become concerned that after scraping, the cracked underpaint would show through. One room is a bathroom, the other a bedroom. I'd like to know how to either get the old paint off or patch it up in some way so a new coat of paint would look smooth. I've had two suggestions from co-workers, one to steam all the old paint off (run the shower in the bathroom), the other to apply something called "thin coat" I think it was.
I've also considered wallpaper in each of these rooms, maybe just to cover up the cracking paint. I'd appreciate any advice with respect to wallpaper as well.
The bathroom is painted with several layers, the bedroom has both paint and I think 2 layers of wallpaper.