Scenery is not difficult if you break it down into small steps. Look at each part of building scenery as a separate project. These small projects are easily combined to create the overall effect. Remember, if you are having trouble accomplishing anything in model railroading, consult other modelers when you meet them at the hobby shop, local model railroad club or on prototype outings.
Backdrops
Backdrops can add great dimension to a model railroad. They fill in the background when taking pictures of your models and add realism to the scene. Take the time to finish the walls behind your layout. Corners of the room should be rounded at a 12" to 18" radius. I used masonite sheets on the wall and am disappointed with the joints. Excellent results can be achieved using picture-matting material. Smooth the edges where they join the walls with plaster joint filling compound. Keep in mind that we are only using paint on the walls. If you move your layout, it is a simple job to paint the walls back the way they were before the layout was started.
Paint the walls with a sky blue latex paint. If you wish, blend the blue with white as you approach the horizon. Any uneven paint mix will look like wispy clouds when it all dries. Clouds should now be applied if desired. The dry paint roller technique can be used to "dry brush" the image to the backdrop. Another method is to cut a random edge on a piece of card stock, hold it above the top edge of the desired cloud location close to the wall and spray flat white paint from 8-12"away. Highlight the lower edges of the clouds with grey to give them dimension.

You may wish to stop here with the backdrops. If you posses artistic talent, you may continue to add detail to the scene. It does not have to be highly detailed as it is just there to give an allusion. There are numerous articles on painting trees and mountains in the major model railroad magazines that you can use for reference.
Roughing In
Once you have the roadbed installed, you can start roughing in for the scenery. I suggest that you complete the trackwork in areas that will be difficult to access later. Those areas are tunnels, rock cuts or places that are a long reach. You may choose to complete all trackwork in a section before attempting scenery.
Start by cutting corrugated cardboard to form gussets that can be stapled to the cross members of the benchwork. Using a utility knife, cut these gussets to the general desired shape of your scenery.

Cardboard Lattice Work
Slice some corrugated into strips about an inch wide. Lay these horizontally across the gussets and fasten in place with tape, hot glue or staples.

Continue to build a latticework with about 2-3" spacing. Neatness is not a prerequisite. Remember to allow plenty of space for clearance in rock cuts, tunnels etc.

This next step is optional depending on how well your lattice work is supported. If you would like extra support while installing the hardshell, crumple newspaper and stuff it up from the underside to fill the space below the lattice. Use scrap strips of wood as supports. Optionally, some of the crumpled newspaper can be flattened and laid across the surface of the lattice to give it shape. Use the water sprayer to make the paper behave. Shoot some staples from a staple gun in to hold this paper in place.

Leave a little space so as to expose the lattice up against roadbed and fascia so that the hardshell has something to bond to. You are ready for the next step.