For a uniform look, you should probably strip and sand everything, then stain. That is a lot of work. I would probably get some estimates and have it done.

Lucky you!

What finish is on it now? You might be able to get off the old with denatured alcohol if it's shellac. That doesn't smell so bad and is a nicer job than if you have to remove a different finish with stronger chemicals. Dab it with alcohol and see if it gets sticky.

I guess you want to be sure the grain isn't painted on. I don't know if that was done on paneling but if it is, you will want to preserve it. (It doesn't LOOK like faux bois, but the good ones never do!)

Cleaning up old woodwork is a frequent topic on the old house forum--you might want to check there.

This is really beautiful - I don't know how to refresh the paneling but I can't wait to see the finished product!

Looking at your closeup picture, I can't tell if:

1) the wood was painted at one time and then someone stripped the paint off. If so, they did a pretty good job, but didn't get all of the paint out of the wood pores (I'm guessing it's oak) before putting a clear finish back on; or

2) the white speckles are simply deteriorated finish.

I once accidentally spilled latex on an oak parquet floor and even though I got it quickly cleaned off, I couldn't get all of the paint out of the pores without sanding. I'd start with Joseph Corlett's advice about using a Scotchbrite pad and acetone to see what you can clean off. If the white stuff remains, that may mean it's paint and you may have to sand if you want to get rid of that look, particularly if it's latex.

It could be shellac - which would be great. Shellac 'melts' the previous shellac coat - it's an easy finish to apply. Also there are shellac tints that would help where the finish has flaked off.

Tint for shellac

I don't think it was painted- I've been weighing that as well, but there's no other signs of paint, and that whiteness in the pores there is consistent. (I also found an older real estate listing for the place that claimed the paneling had never been painted). I'll try Joseph's advice on a test section and report back. Thanks everyone!!

Ps- am I better off using acetone vs denatured alcohol?

Acetone will remove shellac - test a small area - see if it softens the finish.

I personally prefer using alcohol indoors but acetone might be faster. But acetone is acetone.

I haven't used acetone on shellac but alcohol will dissolve shellac and unless the shellac is totally shot, can actually be smeared around to "repair" the messed up parts. I think your finish should probably come off though. It's probably beyond the "repair" stage.

It will be beautiful.

I would consider giving this product a try. I used it on 60 year old dressers and it did a fantastic job. The feed-n-wax is an essential part of the process. http://www.howardproducts.com/product/restor-a-finish/