Today is all about using fabric for decorating walls with. A few years ago I whisked my husband off to Venice for a long weekend, and we stayed in a small B&B for the duration. It was quite basic but what stuck in my mind was the fact that the bedrooms where furnished with beautiful padded fabric on the walls, I think even the ceiling was draped in fabric, and everything matched, the curtains, walls and bed spread. This style is very venetian, and opulent, very grand, and usually accompanied with beautiful gilded light fittings and picture frames, as in the photo above. It also has other benefits as well such as insulating a room and adding a bit of sound proofing. But this look can be a bit over powering in a small room. A great way to use fabric would be perhaps as a feature wall in a bedroom behind the bed, adding a touch of drama, and grandeur without going over the top. The Designers Guild have some really lovely fabric that would look stunning used in this way.
There are a couple of ways to fix baric to walls, the first is by adding batons to the wall top and bottom, then stretching the fabric across them like a canvas, the second involves using spray starch to attach it to the walls, instructions can be found here.