I've seen this problem discussed on the Decorating Forum here a few times. Maybe do a search of the Decorating Forum and you will find something that works. As I remember it, the best solution is to spackle the entire wall and paint it.

Thank you Bud wi, I had a feeling that was going to have to happen ;-(

This is probably a case for priming the wall(s) with the BIN-Primer OR Odorless-Oil from Zinsser AFTER wall is repaired/sanded smooth again.

* Doing this will prevent any paste-residues from bleeding through to topcoats of paint.
* These particular primers are Shellac/alcohol-based (BIN), and oil-based (the Odorless Oil).
* They also don't have the "pulling" tendency when drying as do Latex primers.
* For the "absolute best" prep...
>>> Apply a coat of Gardz-primer from Zinsser.
>>> This locks-down all the paper edges, glue residue, etc.
>>> Re-skim/texture wall at this point.
>>> Vacuum/remove ALL sanding dust.
>>> Now, any good Latex primer can be used.

Faron

I'm doing this right now, (in 3 bathrooms) and am pretty much doing it just the way Faron described it. I'm writing to encourage you -it isn't that hard!

I'm using DAP joint compound to re-skim/texture the walls, ready mixed in a plastic bucket (Lowes or Home Depot). You can buy the kind you mix up yourself too, but I didn't want to mess with trying to get the exact same proportions every time, etc. I was very intimidated. But it is actually much like frosting a cake! (easier I think) You will need a wide plastic applicator-thingy... They are pretty cheap. You might want a smaller one for small areas. And an 8-10 inch one for bigger walls. The trick is this: Just as with a cake, if you are too skimpy with the joint compound it is a little difficult. You know how if you are skimpy with frosting, you can pull up the top of the cake? Same principle. So slather down a good layer with your applicator-thingy, spreading it out smooth-ish, but not thinner than 1/8 inch. After you've slathered an area maybe 6 ft by 6 ft, use a roller and roll it out. This will give you a bit of texture. Don't worry if you have too much texture, because 24 hours later you just sand it (it sands incredibly easily) and get exactly what you want. Honestly, it is so much easier than I thought it would be that I'm looking around for more places to use joint compound. It's almost fun!
email me if you need to!
Lynn

This is exactly what I've been looking for. You have no idea how relieved I am to find a solution for this. After pulling the paper off easily, I discovered the glue IS NOT coming off. I've been soaking this stuff in Dif and less than 50% is coming off - this stuff was put on to raw drywall as far as I can tell - I've already damaged some of the drywall. I hope you're still around, Faron - because if this works I will be singing your praises!