Best way to restore a side panel?

Anybody know what's the best thing to use to restore a side panel? The red stuff on my mini is peeling, and you can see the wood underneath. I'd like to just cover this up, but I'm not sure what to use. Any suggestions?

If it's just peeling, you can buy adhesive, and just glue it back in place. Just ask at Lowes or Home Depot what kind of glue you should use to get vinyl to adhere to wood (without melting the vinyl). If it's nasty and ripped, well, you'll maybe want to replace it with something else... Paint? Laminate?