Please post pictures.

You could put fresh wallpaper over the old. There are lovely ones.

Have it covered with 3/8 inch drywall.

saypoint, how does one install new wallpaper over old? I need to know this! Thanks.

"Near impossible" I know, but in a bedroom I think you have to bite the bullet. Painting or papering over what's there only compounds the problem. The issue becomes destroying the drywall underneath. Re-mudding might be the end result, at which point the 3/8 dry wall doesn't seem like such an over whelming option. Bead board could work/paneling could work. There are no easy fixes that is for sure.

The problem with drywalling over it is that all the trim needs to come off and be reinstalled, and the jambs around the doors and windows may then have gaps.

Without any details nobody can really help you with how to get the wallpaper off.

Getting wallpaper off means lots and lots of very hot water, and lots and lots of elbow grease. Protect the floors with a heavy plastic drop cloth on top of which you put lots and lots of newspaper. With enough hot water, it will come off.