If you plan to wallpaper the dollhouse and add flooring, complete each step fully during assembly. Once the dollhouse is finished, you won't be able to access the interior.
I started by applying paper flooring to the first floor. I primed it with a color similar to the flooring I intended to use. You can print this paper flooring from your computer if you wish. I found some printouts at Ron's Miniature Shop in Orlando, Florida which feature a parquet design. The paper flooring sheet was slightly smaller than the floor area, so I had to patch the pattern in a few places, but it's unnoticeable.
After that, I assembled the interior walls and primed the second floor to prepare for the paper flooring. I recommend using a good quality, permanent glue stick for applying all your flooring and wallpaper, rather than a school glue stick. I prefer UHU Stic, which is available at most craft stores. A glue stick prevents the small pieces of paper from getting too wet, which can cause bleeding, warping, or tearing during application. It provides just enough adhesive for easy positioning and dries fairly quickly.