Wash/scuff sand the walls, and prime with an oil/alkyd primer. XIM would work well also. I use
Cavalier Wall Liner exclusively. I linked you to the 26" type, it also comes in 52" bolts. If you are handy at hanging, you can doublecut it as you go, and have minimal floating to be done at the seams. The seams will mostl likely need a little skim coating, then prime it with an acrylic primer. Then paint. Call Cavalier, ask for Ed, and tell him Tim in StL sent ya.
For a more permanent fix, check out
Flexi-Wall products.