We're loving paneled walls right now. The Catherine half creates the most stunning classic homes layered with paneling and rich materials.  I'm a bit more contemporary, but love these spaces from past projects of ours.  Right now we're working on a few more modern spaces, but we're adding paneling.  The key is the tone on tone, white on white or grey on grey and keep the style clean like the dining room shot below.  This mix reminds me of spaces you see in Europe, classic apartments dripping in architectural detail but decorated in a modern style.  Don't be afraid to mix it up.