Jack, you should post a picture of what you have after you take out the paneling.
Sheetrock is easy to hang, you screw it to the studs. I would take all the plaster off, wood lath and fix or update anything you need to inside the walls.
That is all pure labor and a dust mask and dumpster.
Then you get to do everything right, and if you have an issue some day you are not messin around with all the stuff you buried. Besids that, going over plaster makes your trim work harder. You need to remove the baseboard and window trim to do that anyway.
Go to the library for a free book on remodeling and sheetrock, that way you know the advice is good and handy.
There are plenty of sites for sheetrockin, just google it.
Let us know what else you need. And remember, have some fun with the demo, I usually cut a persons lifesize cuttout into the plaster and show the customer. It always gets a chuckle.