Yes, you can apply peel-and-stick wallpaper over wood paneling, but it requires significant preparation for a good result. Peel-and-stick wallpaper has a weaker adhesive than traditional wallpaper and works best on smooth, non-textured surfaces like painted or primed drywall. Because wood paneling is often textured with grooves, any flaws in the underlying surface will likely be visible after application. To prepare the paneling, you must ensure the surface is free of cracks, holes, and protrusions by filling any indentations and sanding rough spots to create a smooth surface. An alternative is to remove the paneling and apply the wallpaper directly to the underlying drywall or plaster, provided it is in good condition.

When choosing materials for finishing basement walls, consider factors such as moisture resistance, durability, and fire resistance. Opt for materials specifically designed for basement environments, like moisture-resistant drywall or cement board. Insulation with vapor barriers can help regulate temperature and prevent condensation. Consider using mold-resistant paints or coatings. 

Research and consult with experts to select materials that are suitable for your specific basement conditions and intended use. Prioritize quality and compatibility to achieve long-lasting and aesthetically pleasing results.

While some people are confident in their ability to replace concrete by drilling out the broken pieces and replacing them with bagged concrete, it’s possible to run into snags that make hiring a professional worth it. Trying to level concrete slabs can require special equipment, which can be pricey to rent and tough to operate. It's also crucial to contact your town's municipal office to ensure you are allowed to take on the project without a permit.

Ideally, you want to ask the wallpaper installers you’re considering for examples of past work, and references you can call. These will prove that the installer can handle your job, make your room look professional, and will also give you some insight into the kind of customer service you can expect. Before you start calling companies, you might want to narrow down your options by finding installers with mostly positive reviews online.