there is a backing paper you can get- you put it up first and then put your wall paper over that. It's supposed to conceil grooves.

I have put wallpaper over paneling several times without doing anything about the grooves. Just don't press the paper down into them. Try by putting up one strip of paper and leaving it for a couple of days to see if the grooves show. If they do then you will have to fill or cover them in some way. If not, just go for it.