Damn I'm lazy. Still not done. All those holes in the drywall (160 of them) filled in real nice with spackle. My wife did them in about an hour. I've sanded the wall flat but still have a few spots to deal with. She left too much spackle around the holes. Should have made sure she was scraping it clean, but I didn't want to bother her when she was working. Have to look over all the holes and maybe respackle a few that settled. A lot of holes to feel and eyeball.
What's surprised me is the liquid nails where the wainscoting was sands down flat pretty easy. I think it's all going to work out good.
--Vic