It works okay, but not as good as a real chalkboard.

I have read many design blogs that wrote about using chalkboard paint....it is a very popular idea, even in kitchens. Google it and see what you come up with as far as bloggers who blogged about it. I think it is very attractive and your kids would love it.

I strongly recommend it to any family. Having a chalkboard in the house at the center of everything was the best communicator, teacher, rendevous station, human expression station.
I painted a pc. of 3/4" plywood and screwed it to the wall, filler over the screws, than painted green chalkboard over everything. my brother made us a 2 groove tray out of Redwood.
It was great to see the adults reaction to having it as it was the kids. Good luck!

Thanks! I've googled it and seems like more people Love it then hate it. I was going to do a full wall but now I'm thinking a good size section of the wall and put some molding around it to make it "pretty".

dry erase board...can get 4 x 8 sheet at home depot...

I agree - chalkboard paint is awesome. I have an entire wall of it in our study. And we don't even have kids! We use it for work to "chalk out" our to-do list and such.

The wall basically looks black and is a very dramatic accent wall.

Do keep in mind that the chalking will produce a lot of chalk dust (or maybe I have the wrong type of chalks?). For us, the dust falls to the floor and I sweep it off the hard wood floors. I like Jumpilotmdm's idea for a tray.

Lastly, you can custom color the chalkboard paint. Check out this from Martha Stewart (of course!)

http://www.marthastewart.com/271574/custom-color-chalkboard-paint