Paneling and Trim - Need some seam help on painted paneling?

Last year my we decided to paint over my son's paneling in his room. It turned out quite well as I filled all the slits with joint compound and sponged them down. They look smooth but we ran into an issue during the winter. Either from the house settling or heat and cold expansion the seams where the panels meet cracked. I filled them too with compound.

I read on here that some people caulk the seams, what type of caulk do any of you recommend to do this job and will I have to sand or just fill and wipe or putty knife the kaulk sticking out of the fill away?

I should be able to just prime over it and paint again right?
I was going to do drywall over it but fear that I won't be able to get the 8' sheets up the steps as its an old brick townhouse with steep steps and sharp turn at the top. The paneling bent easily I can assume is why the previous owner used it.

My other option was to do a textured wall on one of his walls but people don't care to much for that anymore but in old homes with plaster walls and such you see that allot.

Thanks for your help and info!
Spankey:)

IMO you are better off leaving all the grooves and just painting the paneling.

Joint compound will always crack sooner or later at the paneling joints. Caulking will do a good job of sealing the crack but it would be difficult to get a nice smooth, level joint with caulking. The caulking should stretch some as the wood expands/contracts from humidity differences and the seam will likely show.... but not as bad as the crack does.

Thanks! The only thing is that I already filled all the groves last year. So we have roughly 6 seems that now show in the room. I guess I would have to try to caulk the seams and keep the fingers crossed!

LOL