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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.

While textured walls can elevate a space in many ways, there are a couple of downsides to consider. Namely, they’re hard to clean, and some textures fall out of fashion quickly. Make sure to consider all your options to find one you truly love before diving in. 

The color of the paint, its opacity, and the depth of the texture on the paper all affect how many coats of paint you need to apply to paintable wallpaper. You'll need at least two coats of paint to ensure even coverage. Don’t be surprised if you need to apply three coats if the embossing is very deep or if you use a dark color.

Common mistakes when finishing basement walls include neglecting proper insulation, insufficient moisture management, and poor ventilation. Not addressing these issues can lead to mold growth, water damage, and discomfort. Additionally, inadequate planning, improper framing, and rushing the project can result in subpar outcomes. 

It's essential to follow best practices, seek professional guidance if needed, and prioritize thoroughness and attention to detail.