Open all the boxes of House of Fara wainscoting. Place the panels flat on the wood paneling or on top of the 2-by-4 boards. Leave the panels in the room for 48 to 72 hours to acclimate the panels to the room's environment.
Prime and paint or stain and seal both sides and all edges of all the panels, the base trim and the chair rail cap. Allow the items to dry completely.
Prepare the plasterboard walls, if necessary. Smooth out any deep bows with joint compound, and allow to dry. If a portion of the wall protrudes, drill in some drywall screws to press the board to the underlying wall stud.
Locate and mark the wall studs with a stud finder and pencil. Mark a level line where the top of the base trim will sit. For example, if your base trim is 2 inches high, mark a level line 2 inches high around the room perimeter.
Place the first base trim piece on the base level line. Nail the base trim to the bottom of the wall with 1-inch finish nails, taking care to nail into the wall studs behind the plasterboard. Continue nailing the base trim pieces along the level line.
Place the first wainscot plank in an inconspicuous corner. The panel's groove should face the corner. Leave approximately 1/8-inch space between the first panel and the corner of the wall. This allows room for the paneling to contract and expand with the changing temperature and humidity levels of the room, and prevents buckling of the panels.
Drill two small holes at an angle in the tongue of the first panel -- one hole approximately 12 inches down from the top and another hole approximately 12 inches up from the bottom. These are called pilot holes and will prevent the panels from splitting when you drive nails into them. Ensure that you drill the holes at a 45-degree angle at the top of the panel's tongue (see Resources). See the Resource link for an image showing the proper toe-nailing procedure.
Hammer 1-inch finish nails into the pilot holes. Use the nail punch to carefully drive the head of the finish nail slightly below the surface of the tongue. This will prevent the nail head from snagging on the next interlocking panel.
Insert the groove of the second panel into the tongue of the first panel. Allow 1/32 inch of space between the two panels to allow for future contraction and expansion.
Drill pilot holes into the tongue of the second panel. Nail finish nails and punch the nail heads.
Continue installing panels in this manner.
Measure and cut the last panel in the run to fit. Drill pilot holes through the surface of the panel and hammer the nails.
Install the wainscot chair rail on top of the finished paneling. Turn the chair rail so that the groove is upside down, resting on the top of the installed panels. Drill pilot holes through the chair rail at the location of the wall studs. Hammer the rail to the wall studs. Punch the nail heads with the nail punch.
Install inside and outside corner trim. Predrill the molding strips. Squeeze a fine bead of wood glue on the back of the molding and press into place. Hammer the molding into place. Wipe any excess glue with a damp rag.