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Remove the original ceiling, leaving the insulation and studs as well as any other framing. Take length measurements of the ceiling.
Mark the length on your boards with a pencil and cut the boards to size with a table saw.
Starting on one end of the ceiling, face-nail the first board and, for the rest, nail through the tongue. To accommodate recessed lights, place boards over lights and, with a pencil, trace light locations onto boards. Using the jigsaw, cut out light areas and nail boards in place. Continue the process of nailing boards and making any necessary cutouts until the ceiling is covered. Leave a small gap between first board and the wall and the last board and the wall.
Measure the length of the walls in the room and cut the molding trim to size by sawing planks of beadboard in half. Then, using the nail gun, nail molding in place. Repeat this process to add trim to all walls that come in contact with beadboard.
For a finished look, paint the beadboard ceiling. Paint will camouflage nails.