Chris wrote:

I am removing wallpaper in an 80 year old house. Underneath the
wallpaper is plater walls. In many areas, the top coat is cracking, or
buldging away from the horsehair base. The base is still solid and
intact.

I had a guy over to see about restoring the walls. He said he will
hammer out the buldges, tape cracks and then go over the walls with
two coats of joint compound and sand.

I don't like the sound of that "hammering" idea, and taping the cracks
could end up noticeable, under critical lighting, like drywall butt
joints.

I saw an interesting plaster crack fix on This Old House that didn't
require taping, so you'd get a much smoother job:

http://www.thisoldhouse.com/toh/arti...628100,00.html