Surprisingly, we discovered that there are hardwoods underneath the linoleum, so we're going to have that refinished. I think hardwoods in the kitchen looks amazing - it's like an upgrade for potential homebuyers.
Shockingly, the plaster underneath the wood paneling is in incredibly bad shape. As bad as you can possibly imagine. The plaster is crumbling as we take down the paneling. There's no repairing it, but that was a cost we had budgeted in, because we didn't want to keep any original plaster in the kitchen anyway. Also, the laths are bad - that's going to come out and new framing must go in. I'm actually going to reuse the existing framing 2x4's that was used to cover the beautiful original beadboard and lower the ceilings on the front porch. It's in good shape, and it would be a shame to waste good solid pine wood.
Another challenge with the space(s) is electrical/plumbing work. The electrical wires for the appliances are coming out of the floor - which means there will be holes in the hardwoods, but fortunately, the cabinets will be covering them. All of the switches/outlets must be realigned and retested to make sure they all work. New electrical work must be done to add a light fixture in the butler's pantry (which will be renovated to relocate the fridge and surrounded by built-in cabinets for more storage - storage is the biggest issue in this house).
As for plumbing, it's coming out of the floor again, so we're going to see if we can get some advice from a plumber on how we can build the cabinets around it so it won't be so obviously retarded looking.
Here are some not-so-tasty photos of the current state of the kitchen.