Changing the paneling is not the problem. Once you take it off, you are going to have to deal with rewiring and reframing to meet fire code, and insulating/water proofing. So, essentially, you will need to restart as if you are finishing an unfinished basement.

We pulled ours out and cleaned/drylocked the walls. If you can find a contractor, its not a big deal to get it done.

We painted ours. It looks great!

dont half ass it. fix the moisture problem

+2 for painting. We painted the paneling a beige color with white trim and it looks like a new room.

Anonymous wrote:What about painting it? It would give the walls texture.

+1 We had old solid wood paneling in our basement and it looks great painted white. We'd had some moisture problems over the years so we had it tested for mold and all was fine with it. The inspector told me we were better off sticking with the wood vs. replacing with drywall because drywall is much more likely to get ruined/developed mold if there is ever a water problem.

We power washed and then bleached the panelling and then painted over with a clear seal. It was a messy job but looks fine. We considered dry walking but with small kids throwing balls around and what not, I'm sure we would have had to repaint numerous times. It really lightened up our basement.

What about painting it? It would give the walls texture.

Thanks, PP, for your response. We're in the DC metro, but unfortunately when I looked, it appears to be concrete blocks...

A 1940's colonial basement in DC Metro area might have plaster behind the wood paneling if the latter are interior walls. Concrete block exterior. Why don't you remove a panel and see?

Would love some expertise from someone who has tackled this. Our 1940s era colonial has wood paneling on the basement walks. How big a deal would it be to replace with drywall. It's approximately 15x20. Thanks in advance!