Put in some nice clean sheets of Sheetrock today.    We are going to be tiling this area, however since its considered a “dry area” its ok to put the tile right onto Sheetrock, instead of having to put up Durock.   I used only one piece for each wall, which made getting the 8ft long piece into the room, and upright a bit tricky, but the lack of a horizontal seem should make life easier.  I also learned that its a much better idea to cut the rock a little short and then spackle the corners (which you have to do anyway) than it is to try and cut it exactly and end up with it being a tiny bit to big in one spot.   If its just a bit to big you either have to pull it out and cut it a bit bigger, or attempt to cut it in place.  If you try to force it (which of course I did) you end up breaking a big chunk off and ripping the paper.  Not a good result.   It should be hidden under the tile though so it won’t matter in the end.  I learned my lesson and the next piece went up easily and fit well.