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To dream that you or someone is hanging up wallpaper signifies that you are putting up a barrier or some sort of shield between yourself and others. It also suggest that you are covering something up or that you are hiding a secret. Alternatively, the dream may mean something that needs beautifying. Consider the colour and pattern of the wallpaper, as it will offer clues as to the kind of barrier, secret or feeling that you are putting up.
To dream that you are peeling or stripping off wallpaper denotes that you are beginning to let your guard down. You are breaking down your barrier one layer at a time. It also indicates that you are revealing aspects of yourself that have been kept well hidden.