you might try OSB strand board--it looks like pressed chip board and runs about $6 a sheet.
Try putting it up side ways instead of up and down--if your walls are 8 foot or less you will have one seam in the middle,
that you can cover with chair rail.
If you want to paint it, it might not looks so great, but if you like
the natural wood look, just put a good sealer on it.
try a couple of pieces first---if the room is very big it may be to much wood...if you live in a northern zone I would definetly put
insulation in the walls first--and LOTS of outlets.
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