I'm really hoping someone has a good suggestion for what I can do about this DIY nightmare.

Wanted to paint the walls in my living room. Started prep for walls and realized previous owner (or the bank who owned the house before we bought it) painted over wallpaper that was not properly removed. The walls have a rough texture that just feels like wallpaper fiber (after you take the paper part off). The whole wall, top to bottom, is rough. And you can see small splotches when you look at an angle that, I believe, is wallpaper paste.

What are my choices? I googled this and some people say do a skim coat over the walls (which will be a nightmare with the dust) or sand the walls down - which I'm not sure will take care of the paste issue, but it might. Again, lots of dust. We really don't want to put new wallboard up.

Ideas? Thanks!