Painting over wood paneling. [View All]

I have something referred to as "peckerwood" paneling in my basement finished room (can't find information on it on google). It's wood with little holes in it. I was told it's real wood, not fake. I want a quick fix on the walls to brighten up the room when we eventually sell our house. I'm using oatmeal colored but sturdy carpeting and putting in recessed lighting for an update of this "family room" or whatever they called it (the house was built in 1941, don't know when the basement room was finished).

Can you paint over wood that has holes in it (naturally)?

Any other ideas on how to lighten up a basement room (it could make a pretty nice playroom for kids)?