Water comes from both the shower head and the faucet. I thought that it was just a problem with the diverter on the faucet, so I bought a new one and installed it today (Danco adjustable tub spout with diverter 88434). No luck! It still comes from both the shower head and faucet. If I pull up on the diverter, then it just comes from the shower. I cannot seem to get the water to just some from the faucet.

I took off the faucet and the shower head and the water comes mostly out of the pipe for the shower.

Is this a more serious problem that will involve me breaking through the wall to repair something?

The shower was this way when we bought the house and I tought that it was an easy fix.