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Yes, you can put paneling over textured walls. Of course, this will come down to personal preference and the type of paneling you want to install. From board-and-batten to shiplap and wainscoting, there are plenty of options to choose from.

You should wait at least 24 hours for drywall mud to dry before sanding or applying another coat. However, the exact drying time depends on several factors, including the thickness of the application, room temperature, humidity, and the type of compound used. Thicker layers, or projects in high humidity, may require 48 hours or more. Lightweight compounds tend to dry faster than heavier, all-purpose ones. You'll know the mud is ready when it feels completely dry and firm to the touch and has changed to a consistent light color. Sanding too early can cause smudging or gouges, so patience is essential for a smooth finish.

You can put drywall mud over paint to even out the surface or entirely resurface it. Sand the surface with 280-grit sandpaper, vacuum the debris and dust with a shop vac, and clean it with a slightly damp cloth. Allow the surface to dry. Apply drywall primer, especially if you’re skim-coating an entire wall. Apply the right type of drywall mud over the surface and smooth it with a trowel. Allow the layer to cure fully, then sand it before applying another layer or painting it.

Yes, small, superficial cracks are normal as homes settle. Older homes have a higher chance of showing signs of settling through hairline cracks from temperature changes, moisture changes, and soil shifting. However, larger cracks, or discolored cracks from water damage, may signify a bigger problem that requires reparations and preventative measures.