Here's a recent thread:

Here is a link that might be useful: beadboard in the bathroom

heidia, while the current bath we just did has only had the beadboard (wider version) for just over a year now, I have had it in previous baths. The bathroom I grew up in had it. There is a difference in the quality of what you put up. If you put up the pine boards and not the thin laminate type stuff, it will last a lot longer. Also, give it some good coats of paint to seal out the water. It will last a very, very long time. Probably longer than the grout would if you put in tile.

We also bounced back and forth between tile and wood for this bath. For the look we wanted it was a LOT of tile (and more costly a lot of trim tile).

Good luck,
Kalindi

Heidi - It takes a small amount of design:

1 - a good bathroom fan - preferable the humidity-activated ones

2 - seal the back and the grooves of the beadboard (not just the front) with waterproofing or paint.

3 - install with the bottom edge a half-inch off the floor so in case of a leak it won't soak up water. Baseboard will cover the gap.