We decided to use beadboard for the tub surround. I used the original wood as a base, cutting it down to fit (the addition of tile shrunk the space a bit). Once I'd gotten it cut I couldn't use all the old screw holes so I had to make some new ones. I didn't have the tool with me to sink them so I used a standard drill bit and made a shallow hole to sink the screw into (it needs to be flush for the beadboard to lay over the top).
It's in, still needs the nail holes filled and a coat of paint.
Got the nail holes filled and now I need to caulk and paint. It's looking good, and almost done!
Thursday is my last day, it'll be a long day of finishing touches and this project will be complete. Before and After pictures coming soon.