Very cool idea (especially for renters!)
Ruche did an awesome job with their Spring lookbook. They recently blogged about the DIY projects they used to bring the whole look together. One of the projects included using fabric as wallpaper, and creating a homemade wallpaper "glue" out of cornstarch.
"Make one batch at a time to avoid lumps in the paste. For one gallon of paste, sift one cup of cornstarch into a large pot. Slowly add one gallon of hot tap water a little at a time, whisking thoroughly after each addition of water with a wire whisk. Heat the mixture on medium high heat on the stove, stirring constantly, until it thickens and becomes clear. Let the paste cool to room temperature for use."
Best part is -- it's totally removable. You can just peel the fabric off and wipe down the wall once you're ready to move on and you're good to go! Definitely want to give this a try. Will let you know how it goes!