Clean the surface of your wall studs with a broom. Hammer in any protruding nails or screws to provide a smooth surface along the lengths of the studs.
Apply construction adhesive to the studs along one wall. Use a caulking gun to squeeze a ¼-inch bead of adhesive all the way down the center of the studs.
Start at one corner of the wall and press a sheet of vinyl-covered drywall into the adhesive. Press the end of the sheet firmly into the corner to avoid a gap. Attach the outside edges of the drywall to the underlying studs with the included drywall screws or the ones recommended by the manufacturer. Vinyl-covered drywall usually comes with matching screws that blend with the surface color and pattern. Attach all the panels along the wall in this manner, butting the sheets closely together.
Install decorative cove along the top of the vinyl-covered drywall. Use small finishing nails to hold the cove in place.
Attach the baseboard along the bottom edge of the drywall in the same manner.
Attach the matching finish strips over the vertical joints to hide the cracks between the sheets of drywall. Apply the adhesive glue to the centers of the strips and press them along the lengths of the joints. Gluing the finishing strips over the joints and gluing the decorative corner strips over the corners will help hide the blunt edges of the vinyl-covered drywall.
Use a damp sponge to wipe up any excess adhesive that oozes out from under the finish strips. Let the adhesive dry for the amount of time the manufacturer recommends.