In the past, medium density fiberboard, or MDF--a dense, smooth particleboard made of compressed fine sawdust and hard resin glue--was typically used as a backing for hardwood veneers. But as high-quality fine-grained wood becomes increasingly expensive, MDF is playing a more visible role in interior design.

"One hundred years ago, people used redwood and vertical-grain Douglas fir and painted them," says Kim Feldman of Jazz Construction & Development. "We use MDF because it can give us the same refined look, but it's earth-friendly." In a new home development called French Ranch (www.frenchranchhomes.com) in Marin County California, Jazz Construction used 1- by 8-inch MDF wallboards and painted them.

"There's a trick to making MDF look natural," says French Ranch developer and builder Bruce Burman, Feldman's business partner. "We use spray or rollers to get the paint on the wall, but we finish it with paintbrushes. MDF is a completely flat material, but you can see the brush strokes in the paint, and that makes it look like a wood grain."