Nail horizontal furring strips -- narrow strips of wood -- onto wall studs. There needs to be something solid to nail the paneling to. Install a strip at the top and bottom height of the paneling and no more than every 2 feet between them. Make sure there is framing in all corners too. If you are putting a pattern in make sure you have framing where required.
Snap a straight chalk line if you are working on a ceiling. For walls plumb the first board with a level. Install the board so the tongue is to the outside and there is a 1/2-inch gap between the groove side and the corner to allow for expansion. Face nail into the framing along the groove side. Nail the board through the tongue side into each furring strip with a finish nail. Angle the nail toward the base of the tongue and ensure the head is flush with the board to make it easier to install the next board. You can also use an air gun that shoots finish or brad nails to speed up the process.
Slide the groove of the next board over the tongue of the first board you installed. Tap tight it tight with a block of wood -- a hammer could damage the tongue. Squeeze the rows together and nail through the tongue and into the furring strip behind it. Continue adding boards. When you get to end of wall or ceiling, rip (saw down its length) a piece to fit and nail into the framing close to corner. Either trim or the perpendicular board on the next wall covers the nail holes.
Apply trim where desired. Apply crown molding around ceiling if desired. Sink and putty any visible nail holes with a color matched putty if desired. There should not be many.