My Pinspiration was this paneled headboard:
I pinned it from Brooke at All Things Thrifty. I combed the web looking at dozens of upholstered headboards before deciding I wanted to make a paneled one. There are instructions on how the inspiration headboard was made here, but mine was actually constructed pretty differently. For the base of my panels, I used canvases. I bought two packs of seven 11 x 14 canvases at Michaels. They are regularly $20, but I bought them with 50 percent off coupons (of course) so I got the two packs for $20 total. I only used 12 for the headboard, so I have 2 more for another project. I loved the giant headboard that Brooke made, but I wasn't going for something that dramatic, since I didn't want it to compete with my stencil wall. Also, although we have no plans to move, I've never lived anywhere longer than 5 years, so I guess it's in my nature to want my furniture to be portable. Canvases made our headboard much more lightweight than making the panels out of any type of boards. I can easily pick up the headboard and move it myself.
I bought the fabric ages ago at JoAnn Fabric. I don't remember how much it cost or how much I purchased, but I do know I bought it when decorator fabric was half off. It is the same fabric I used for the rocking chair. In addition to the canvases and the fabric, I used a queen sized foam mattress pad for the padding. I cut out 12 rectangles from the mattress pad, 15x18 inches each. Then I wrapped each canvas with the foam (bumpy side in). I used my staple gun to attach the foam to the inside of the canvas frame, and then I stapled down the corners. I found it was easiset to staple the short sides of the rectangle and then the long sides. Perhaps you could make it easier on youself and staple the foam right into the back of the canvas frame, but I thought it made things smoother to wrap it around, and I also l liked that I had fewer staples to avoid when I stapled my fabric.
Edited to add: Click here for a headboard update.