Should I continue peeling or just patch up this spot?

 

I prefer to remove the wallpaper. Joints lines typically visible and paper can start peeling.

I have always just used the $5 wallpaper scoring tool and hot water, and a putty knife. Hope they didn't wallpaper the ceiling --- that is not fun, at least not with the hot water method ---- perhaps less mess with a steamer.

 

Oh goody you get to deal with someone that was to lazy to remove the wall paper and just painted over it.
Plan on plenty of time, having get it off, having to fill in the low area's, priming with Guards primer, then having to paint the walls with two coats of paint.

 

What you have is original wall board from the 1930's. It did not have the paper facing that wall board has today. Back then most people applied wallpaper to their walls and many times DIRECTLY to the brown board. You're going to do a lot of damage to it if you continue to try and remove that wallpaper. It may be time to apply some Gardz to everything and do a skim coat.

 

That looks just like what I had in my house.

Are your walls plaster? If so that will make removing the wall paper easier since wall is less susceptible to damage.

I'd spray with with hot solution of water and vinegar, let it sit for a few minutes and scrape off. Typically paint and the paper would come off in separate layers. After that, scrub the wall at least twice more with warm water/vinegar to remove left over adhesive. Then coat with Gardz. Then fix plaster cracks, the damage I inflicted removing the paper (which really wasn't too bad) and any other defects. Prime and two coats of paint.

That was in over half my house. I'm down to only one closet now. It was even on three ceilings. We really need a building code against papering ceilings as well as painting over wallpaper.

 

In the 1980's I had the pleasure (?) of removing rooms full of it and painting virgin 65 year old plaster for the very first time. In the 20's and 30's they papered everything.