Need to paint or wall paper kitchen... need thoughts...?

My kitchen walls are covered with this plastic-board like material that is typically found in mobile homes. My house is stick built, so I'm not sure where they located this material. Anyhow, there are rips, color stains and holes from the previous owners wear and tear. I'd love to cover the walls in the most efficient, yet inexpensive method. I've considered wall paper, but the guy wanted nearly $1000 for the extremely small room (he said because he had to prime the walls with something and it has many nooks and crannies). I've considered paint as well, but the holes and rips will still show. Are there any other options? Are there people who can come out to assess? If so, who? I've called all of the wall paper places in the area and NOBODY does it anymore. Any suggestions?Need to paint or wall paper kitchen... need thoughts...?
You can paint it yourself and save big bucks! Go to home depot and ask them about a product to cover the holes maybe wood putty? They will find something for you and even explain to you how to use it. Then you buy a can of primer (it's just like paint) prime the area, when it dries, you can paint it. This will cost about 30 dollars. It's easier than you think!


Good luck!