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New Paint blistered --could it be ontop of paneling?

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Joined: Nov 18 2003

Our Eichler was built in 1960. A wall in the dining area was painted and then sponged or had some other type of fancy paint technique applied. It appeared to be latex. When we moved in, I primed and then painted. The primer went on fine. After the color was painted it blistered all over and you can peel off the paint --all previous paint also. Underneath, It looks like sparkly plaster --somewhat friable. It is not seamed like sheet rock. There is no obvious wood veneer. Was plaster used in the Eichlers or could this be paneling with the wood veneer removed due to the paint blistering? The paint adhered fine on other walls that had the same paint decor but seemed to be a different material type. Thanks for any ideas you have.