I am currently working on a cabinet with a paneled back.. The verticals have a 1" tenon on them, and a 1" deep mortise pocket is cut into the rail (1" deepx 3/8" thick) and then a 3/8" groove is cut along the long rail and then verticals to allow the panel to float in place.. I really like this method because you can peg each of the verticals.. (through the 1" tenon) and by having that long of a tenon you are giving the running length of the panel additional strength.. Works very well for the backs and sides of cabinets, and gives a very classic look. (Much better than plywood).. The critical point here is to give the panels a pinch of space to allow for expansion and contraction.. The panels are not glued.. allowing them to float. Since wood only expands cross grain (left to right) it is easy to trim each of the panels to give the proper fit. Another trick is to apply the finish prior to assembly until you have a good bit of practice in.. This way if you give the panel a little too much space, you will not see the finished (unfinished) lines on the panels.. where it has shifted..
The bed is an example of using the floating panels.. the lighter maple being the panels (of coarse).. Wood an be purchased with a 1" thickess .. and then sliced down the middle (resawed) to give the bookmatched panels that Stickley has become known for..