Water damage repair top of walls.

That is good to hear that the frame is steel and no structural damage has been done. Most of the damaged wood is in the cabinet above the sofa. I will probably pull off the water logged wood as much as possible and glue a new piece back on. It will be easy to hide inside the cabinets. There are no signs of exterior delamination, but there is one crack above the door corner.

Well I happen to have lots of experience on repairing water damage on fleetwoods (5th wheel though). I heard all the good things about them, but have had the worst luck around. After 10' of our side wall delaminated and blew off on the interstate i spent months repairing it. In the class C you should have steel frame but i had wood. Getting the paneling off was a chore for me as the glues had bonded the wood well on the inside (too band the outside fell apart). If there is lots of damage i would try to remove it, but its a bear. If it is a small amount i would go over. I actually just put baseboard style trim accross my cieling joint and painted it. Now it looks like it should be there. Before fixing any of it make sure you find the source of the leak.

Fleetwood touted their Vacubond construction detail for walls. The walls are a sandwich of fiberglass, metal cage with foam between, and a wood paneling. The whole is laid on a vacuum table and glued together, then installed on the chassis.

If there is any way to restore the walls by overlaying, painting, or applying a covering, I would choose that. I think the interior panel removal will be difficult. Installing replacement paneling will also have it's quirks.

You could look through my build thread in my signature line, "The Cowboy/Hilton" to get an idea of some of those projects you've planned.