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Begin the project by cutting the panels to size. Store them in the room where they'll be installed so they'll be the same temperature as the room.
Starting at one end of the wall, apply construction adhesive to the back of a panel (Image 1).
Shove the panel in place so that the groove faces into the corner, and press it against the wall (Image 2). Apply adhesive to the next panel, and set it in place so that the groove fits over the tongue of the panel on the wall. Repeat the process for the rest of the panels, periodically checking for level and plumb.
Use finish nails to secure every fourth panel to the wall. This will help hold all the panels in place as the adhesive dries.
You'll probably have to cut the final piece of paneling. Measure the width of the opening for the piece on both the top and the bottom because the wall you're installing it against may not be plumb. Transfer the measurements to the panel, and cut it to size. Then secure the piece to the wall with construction adhesive.
Finish the project by attaching base and chair-rail molding to the panels.
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