Prepare the room. Take all furniture out of the room or move it several feet away from the wood wall. Place plastic tarps and protective coverings on the floor and remaining furniture and decor items.
Sand the wood wall with a medium-grit sanding block. Wipe down the wall once the entire surface has been lightly scuffed up. This will give the plaster something to grip to and ensure it adheres well.
Fill in the grout or grooves of paneling. Use latex caulk and pile it in the seams or grooves of paneling, if present. Smooth down with a damp rag. Allow the caulk to dry, and repeat the process until the groove is nearly even with the remaining wall surface.
Prime the wood surface with a bonding primer. Roll on the paint with a medium nap roller. Ensure all areas are covered. If the paint seems transparent, add another coat. Do not add excess pressure to the paint roller when rolling on paint. Even, light-handed strokes are all that are necessary.
Add plaster to the entire wall. Open a bucket of premixed drywall compound. Dip a moist 3-inch roller into the plaster and begin spreading the compound onto the wood paneling's surface. Roll in a variety of directions. Using the edge of a drywall trowel or putty knife, knock down any high peaks created by rolling on the plaster. Smooth it out and allow it to dry.
Paint the plaster. Cover the dry plaster with your choice of latex paint. If painting a dark blue or red color, apply a coat of gray primer or paint first. Use a rough-nap paint roller so all crevices of the plaster are evenly filled and covered with paint. Allow to dry.