So, just how hard would it be to tear out the old wall, redo the drop
ceiling, and put up a new paneled wall? Am I like to be able to reuse any
of the materials, or is that all scrap?


Easy is a relative term!
Myself, I would have no problem with it. Make certain it is not a load
bearing wall. Any electrical to move? The suspended ceiling should not be a
problem. You may be able to remove just enough of it to move the wall, or
you may have to tear the whole ceiling down! As far as reusing materials,
the ceiling you can reuse. The wall studs and plates you may possibly reuse,
but sometimes they will be so full of nails, or damaged from tearing them
out, that it is not worth saving them..
Greg