Geoff, you have duplicated your posts here. Suggest you close one down or it can get very confusing. Sorry I don't know the first thing about wallpaper.

based on the drawing, the wall where the bed is. HOWEVER, you mentioned that this drawing is not a true depiction of the furniture you will use and the wallpaper. if that is the case, i think the wall paper can work on either wall, it all depends on how busy this wallpaper is and how "plain" the bed is. if you go with a busy wallpaper behind the bed, you may want to keep your bed and bedding on the minimal side so that there is a good visual balance to the overall composition. if you go with snazzier bedroom furniture, then a busy wallpaper may be a bit much and you may want to put it on the other wall or use a textural option to serve as the bed's background rather then another focal point.

I'm sure there's a lot of information out there thanks to a quick Google.

We have just brought a 1970s home which has painted wallpaper. We stripped the wallpaper in one of the small rooms (about 10m2 of wall). We were hoping to re-plaster and paint the walls ourselves as a plasterer would cost approx. $1,900+GST (including paint). The wallpaper came off easily enough but there are definitely some little imperfections in the old plasterboard which need fixing. Also, the joins between the plasterboard have been plastered but not taped beforehand. We were told that if we want to get a good finish, we would need to cut the groove out, re-tape and plaster over. It may be easier to just replace the gib, scotia and skirtings? Any advice would be greatly appreciated!