We paint out paneling all of the time. It just looks like a simple texture on the wall like bead board to tongue and groove. Don't be afraid. Now, one option you might consider is paint the paneling but leave the door casings, base boards and crown moldings the stain color. Depending on the color you paint the paneling the stained molding accent could be a very nice feature to the room.

We had painted paneling and I liked the look. You often see that in the pottery barn catalog. I think yes it will look like painted panelling but that's not a bad thing (to me). Lots of pics if you'd search houzz for painted panelling.
http://houzz.com/photos/1929757

Painting wood paneling is a great option if you're working on a tight budget. Here's a before and after example of a stairway area we painted white. As you can see, this simple update really brightened up the entire area. Just be sure to use enough coats so that the paint doesn't appear too thin. As we did in this example, it might also be wise to touch up any areas surrounding the paneling if needed. You can read more about our project here:
http://www.braitmandesign.com/design-solutions/a-coat-or-two-of-paint/

I've painted a lot pf paneling. When your redoing cabins in the north woods of MN. and your on a budget you do what you have to.

Our son's room is paneled and we painted it about five years ago. We painted a base coat first and then two coats of a high quality paint. I'm an impatient painter at best, but I attached some photos of the results of an amateur so you can see. My son is 14 and a WWII buff, thus the decor. He helped pick it and helped with the painting. It was time consuming to get all the nooks and crannies, but it's held up well to the abuse of an adolescent boy.