Sounds like you want the look w/o the cost of a veneer plywood. I would strongly recommend the GP brand beadboard paneling that looks a lot lit the 'real' wainscoting. Takes gel stain pretty well and primes/paints like a dream.
I hate the 'paneling' more than anyone else, but this stuff is great, easy to apply, and is priced right (+ is readily available.)
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