I was lucky enough to acquire several pallets that had good quality planks on them. They weren't perfect as they had some cupping, splitting, blemishes, etc. I decided to use them for some wall paneling (also called wainscoting).

I will admit that it was a lot of work preparing the wood, but the price was right (i.e. free). Wainscoting is typically 1/3 of the wall height, or 32-38 inches, depending on where you get your information. I picked a height that would work with the material I had on hand, and that looked good for the wall I was installing in on. Overall the height of my paneling is 36 inches, which meant that the vertical paneling boards were cut at 32 inches. The remaining height was achieved with the top and bottom rail. The edges were cut on a 45 degree (bevel, chamfer, whatever...) so that when they are installed, there is no visible gap. The leading edge was also beveled back and this created a nice joint. The boards were lightly sanded to remove any rough edges, splinters, and blemishes. The finish is a combination of burning, (which is a nice way to normalize all of your wood) staining, and wipe on poly.

Remember, using power tools can be dangerous. I am not there to hold your hand, so you are on your own and you accept all of the risk.