There are a few ways to go about preparing hardboard panels. I'm going to show you how I do it.
1. I cut the panels.
I buy the 2x4 foot 1/4 inch hardboard panels from Home Depot. I measure and cut them into whatever sizes I need with a skill saw. Home Depot will cut them too. If you get them cut at Home Depot be sure to measure and draw lines for the sizes you need the panel cut into. I usually draw out a simple map on drafting paper to decide how to get the best use of the panel with the sizes I want.
2. I clean and seal the panels
The panels need to be cleaned dust from cutting and any oils, dirt, or grime they my have on them. I use a washable tack cloth dipped in rubbing alcohol. It removes any dust or grime the panel might have on it. Next is sealing the panel. I first seal the back of the panels with a mixture of about 50/50 Golden GAC 100 and Golden GAC 400. They both seal the service. The GAC 400 is used for sizing so I put it on the back of the panel to help even out the tension for when the painting is done. Its not really necessary to use the GAC 400, but I find it useful on larger panels. I seal the front and sides with just GAC 100. When sealing the panels I use a small roller. Its quick, easy and re-useable. And a note of interest, either side of the panel can be used to paint on. In this demonstration I'm using the back side of the panel for the painting surface. I like the added texture.
3. Gesso
I use Golden gesso. But any type of art acrylic gesso would work just fine. I use a 2 1/2 inch gesso brush. I've used the roller for gesso but I don't like the texture it leaves. The first layer of gesso I put on straight from the jar. I then wait a few hours for it to dry. The second layer of gesso I dilute with water just a bit so that it settles better for smoother surface. The second layer is applied with opposite brushstrokes to the first layer. Then I wait for it to dry. For the third layer of gesso I add color pigments. I use the Sinopia pigments, but any dry pigment would work. I put small amounts of the dry pigments I'm using on a paper panel. I then slowly mix, squash and stir in just enough water to make a paste. If the pigment is in a water paste is mixes in with the gesso a lot easier. I then mix the paste into the gesso. Adding pigment isn't necessary. I do it because I really don't like starting a painting on pure white. So adding pigment is optional. Acrylic paint can be added instead of dry pigments as well. The surface isn't quite as absorbent so I stick to dry pigments. Just a personal preference. I then put on the final layer of gesso with cross hatch strokes.

And your done! Me being the texture freak that I am, I decided to take it one step further.
I added a layer of Liquitex Ceramic Stucco. Gives a nice texture effect.
And here is my finished panel! With a close up to see the texture.
via artdebustillos.com
I brushed the board with sand paper and then applied two layers of GAC-100. Board is dry, in fact it has sat in this state for 6 months.
Today, I started to apply Gesso, and to my surprise Gesso did not stick. Gesso cringed in to small islands, as if the surface is oily. I had diluted the Gesso with 30 percent water. Just for testing, I applied without diluting and even that did not stick well but was not as bad as the diluted Gesso.
Then just for testing, I applied same mixtures(two) on the 'back-side' of Ampersand's Clay board and Gesso adhered without 'any' problem. This indicates that Gesso mixture is fine and leaving GAC-100. I do not know what to doubt. Have seen anything like this? Is this normal? Please let me know.
Among the three, this is my first 'ever' hardboard. I have not tried applying Gesso on other two. This board is unbranded one, light brown in color that I purchased from Art supplier, Pearl paint. I am using Pebeo Gesso.
Thanks
Ramesh