Clean the sheetrock with a dry rag. Avoid using water or soap if possible, as untreated sheetrock absorbs water.
Repair any holes or nicks in the surface by applying drywall mud or spackle with a trowel or spatula. Smooth out the spackle, scraping it flush with the wall, then let it dry before sanding.
Sand the repairs you made with a fine grit sanding block, then wipe the dust away with a tack cloth.
Remove outlet covers and switchplates before painting. Tape off window trim and molding so the paint and primer doesn't touch them.
Prime the wall with a good quality primer and a roller, if you intend to paint your walls.
Allow the primer to dry completely.
Pour your paint into a paint tray, then use a clean roller brush to apply the paint evenly to your walls. Let the paint dry and determine if a second coat is needed.
Use a trim brush to paint the corners and other trim work.
Clean off the wall with a dry rag as needed.
Apply wallpaper sizing to the walls with a paint roller.
Allow the sizing to dry, then draw a line on the wall with a straightedge to which you can align the first piece. Make sure the line is parallel to your wall edge so the first piece is straight.
Lay your first piece of wallpaper face down on a table and coat the back with wallpaper paste using a paint roller or brush.
Fold the wallpaper over your arm so the paste-side is up. Carry it to your wall.
Hold the top end to the top edge of the wall, aligning it with the vertical line you drew on the wall.
Rub the wallpaper with your hand so it's flat and without bubbles.
Cut any excess away with a utility knife or razor blade and peel it off the wall.
Continue until all of the wallpaper is applied.