Applying fabric to a wall with liquid starch is a great solution for renters and commitment-phobes alike. A bit time intensive, yes, but the results are just about as good as it gets. And unlike wallpaper, you can take it with you when you move!
foam boards from Home Depot covered in damask fabric = gorgeous DIY upholstered wall hangings. RP: Use foam boards or MDF boards (covered w/ felt or painted) to use as back drops for photographing wall hangings.