That popular exterior siding option has moved inside. It hangs like wallpaper and wipes off cleanly so it's ideal for nurseries, kitchens and in homes with pets. Install any vinyl wall coverings during a season when you can keep your windows open. For the first week or so, it will release volatile organic compounds into the air. If there is a fire, vinyl will release toxins like dioxin and hydrochloric acid. Since vinyl is impervious to moisture, it won't rot in a humid climate, although it has been known to trap mold within a wall. Vinyl wall covering is easier to strip and replace than wallpaper and lasts longer. When disposing of it, make sure that it isn't incinerated.
OR....

Choose glass fabric, like Vitrulan, as an interesting wall cover. It doesn't burn or smoke. It's chemically inert and doesn't release VOCs (volatile organic compounds). Since it's inorganic, it doesn't encourage mold or mildew growth. Glass fabric is durable, with the color added in the manufacturing process. The cost is comparable to vinyl, and it can be repainted for a change of color.
http://www.vitrulanusa.com/