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Your walls are likely cracking due to fluctuations in the temperature outside. Drywall tends to expand and contract when temperatures and humidity levels change, and this repeated movement can lead to cracks in your walls, particularly around door frames. If you have multiple diagonal cracks, you may want to have your foundation inspected, as cracks can also be a sign of a bigger issue.

Many homeowners choose to install tongue and groove over drywall. The great thing about this type of ceiling is that it hides imperfections. If your drywall is a little bit wonky or has some minor damage, the tongue and groove planks should cover it and give it an even appearance. Installation is simplest if you install battens over the existing framing before installing your tongue and groove planks.

If the holes in the plaster are small, you can fill them with layers of patching plaster until they’re filled. After it dries, you can sand the plaster and paint over it. If the hole is much larger, consider using bonding plaster first and then a layer of patching plaster, completing the process with sanding and a layer of paint.

Yes, you can install drywall over plaster, but there are important factors to consider. While it can create a smooth, flat surface, it is often not the best approach. Installing drywall over plaster will increase the wall's thickness, which can cause issues with existing window and door frames that may no longer fit. You might also need to adjust power outlets to keep them accessible. A better, though more expensive, option is to remove the old plaster and lath entirely before installing new drywall. Drywalling directly over plaster seals in the old material, and if any problems arise later, you will need to remove both layers down to the structural beams for repairs. Given the potential complications, this job is best handled by professionals.