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It all depends on what you have the most of time or money. Some wallpaper is harder than others to remove, if the problem is that lots of the paper is coming off then try to remove the rest. If you are not having much of it coming off then prime it with an oil or alkyd base stain retarter paint, cut off the lose peices and then apply sheetrock mud to those places and skim the remaining areas then paint. This sound simply and it really is if you have the time, if not then hire a person who's got a reputation for working with a lot of pride and commitment ( drywall finisher ) so you can do the painting yourself. Oh and by the way I have installed, removed, finished the drywall and painted a number of jobs including my own home. Did drywall for eight to ten years, wallpaper for half that time, but now I enjoy working more with wood.
Half our house is painted wallpaper - if the paper is tight, the edges sanded, mudded, sanded, etc. then primed and painted, you really can't tell. Regardless of what some think, there is wallpaper that will not come off. When DIf and a couple other products produced nothing but tiny shreds coming off with the drywall, we called in a wallpaper expert. At the point we called him in, we did not have the option to paint over the wallpaper, so he recommended wallpapering over the existing paper (he was familiar with our neighborhood and said that all the houses on our street had the same problem). He repaired the areas where the drywall came off and then wallpapered over the old wallpaper - it is the most beautiful room in the house.
When our painter started painting the inside of our home shortly after we moved in, he said that most of the painted areas in the house (which is substantial) had wallpaper under them.
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