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Knotty pine paneling is an inexpensive material that works great for creating a rustic log cabin feel. If you're looking for something a little more contemporary, though, it's fine to just paint over it. If the knotty pine has been covered with polyurethane, you'll probably need to use an oil-based primer first, because a latex primer won't stick well to the polyurethane surface.
From: Designed to Sell