You will get better results if you aim your effort at removing the paneling and preparing the wall board or plaster behind it. Paneling, even if you fill the grooves, will have waves.
If I were going to leave the paneling on because it was applied with adhesive that created excessive damage to the wall behind it, I would put 1/4" drywall panels over it and tape and spackle.
First apply a good, even coat of primer (kilz interior primer/sealer works well on paneling) Once the primer has dried completely you will be able to see clearly where any holes or cracks are in the paneling, as you will want to fill any such voids before you apply the paint. When the primer is dry and all the nail, tack and screw holes are filled you can then apply the paint. I like to use a short nap fleece roller cover for surfaces like paneling. The fleece (sheep skin) rollers are a little more expensive but they do not spatter paint everywhere like other roller covers and they last a lot longer.
Wall paneling is easy to install, even for novice do-it-yourselfers. Before installing the paneling, let it set in the room for at least a day to adjust to the humidity level. Paneling will absorb moisture from the air, so it's important to allow room for expansion. Leave small gaps along the top, bottom and sides of each sheet. If the wall shows through between the cracks, use a marker to fill in the space so it's not noticeable.
I would imagine you could but you sure are creating a ton of work for yourself. Painted wood paneling -grooves and all is being done a lot these days and looks great. I think I would consider covering the paneling with 1/2" sheet rock if a smooth surface was the goal. After all - what price sanity?!
Colorbond is a paint that can fill cracks in many different materials. When the paint enters the crack it form a complete molecular bond that cannot be reversed.
If by wall board you are referring to drywall (aka gyprock or plasterboard) then you use drywall mud and tape in the usual manner. If however you are referring to paneling, then it is a different matter.
There is a product called Concrete Resurfacer that is used to fill in cracks in the driveway. Here is a link with a guide on exactly how to do this: http://www.dannylipford.com/home-improvement-video/how-to-repair-cracks-in-concrete/
To fill in cracks ;)
With a concrete crack filler
Use the fill bucket
Orange fill. Green fill. Yellow fill.
Where cracks form in the asphalt/concrete, repair crews fill the cracks with tar to keep water from seeping in and widening the cracks into pot holes.
The one that looks like a bottle of paint being spilled. If you put your cursor on it but don't click, the words "Fill With Paint" will appear.