If your home was constructed before 1980, the peeling paint may contain lead, which is extremely toxic. Airborne lead dust can cause lasting damage to children's health and consuming lead paint chips may even be fatal. Collect some of the larger peels in a small sealable plastic baggy and have them tested and confirmed for safety before moving on to the next step.
Lightly scrape the wall with a stiff wire brush. The goal of this step is not to completely scrape off the old paint, but simply to remove any flakes or shreds that are ready to come off. This will probably leave the wall with an uneven surface, but that won't really matter. If the paint is on an exterior wall, rinse it down with a garden hose and allow it to dry overnight.
The easiest way to fix peeling paint is to use a primer that penetrates the peeling old coat of paint and bonds it firmly back to the wall. There are many brands of peel-stopping primers available, although the easiest names to remember are probably Peel Stop and Peel Bond. The primed finish may feel tacky to the touch, but it will be ready to paint over in one to two hours.
Textured coatings are noticeably thicker than conventional paints to support a heavier build-up of material on the wall. The texture is caused by fibers within the paint that create the characteristic stucco, suede or sandy looking appearance. In addition to textured coatings, many paint stores will offer add-in textures that enhance the look of conventional paints. These additives are best blended into the paint with the dealer's high-speed mixing equipment. The actual coverage varies from one textured coating to another, but you should expect a gallon of textured paint to cover between 100 to 200 square feet per gallon, and some textured coatings require two coats. By comparison, a gallon of conventional latex paint will cover 350 to 400 square feet.
Professional painters will apply textured coatings using a hopper gun attached to their airless spray equipment. Do-It-Yourselfers are more likely to work with a 3/8-inch nap paint roller, although some textured coatings require a longer nap roller or other special applicators that help embed a texture into the wet surface. After the initial application, some textures can be enhanced while the paint is wet by use of a texturizing comb or specialty trowels.