I love your outside entertaining area. It does need a color that would complement but give the area a focal point. I like the darker red,orange colors you may find in natural. You could dress up the table with accessories and place cushions in a complimentary color on the benches. Colored potting containers would also bring it all together. I like the uplighting here in the photo you could place along the back fence to add drama. Your area reminds me of Modern mediterranean landscaping.

Now for Mr 16 months... I really can't decide. His room is going to be on the cold side of the house, with not so much sun so I want it to get that cozy sort of feeling when you come into it. I was thinking yellow or orange curtains? But then I don't know what colour to do the walls. These are some fabrics I like:

I would go with a gold or yellow ... of course I happen to love teal/ turquoise and gold/ yellow together. Something in variations on the photos below... maybe some pink accents if you have a girl or lime green or blue accents if you have a boy.

Hi Michelle - It looks like treated pine to me, and looks as though it has been recently built. If you did nothing it would fade to a grey colour within 6 months or so. This would probably blend in with the house quite well, and you wouldn't have to do a thing! Otherwise I would stain it - there are lots of stains on the market - see if there is one you like. A dark one would create a nice contrast with the house and make the fence look more like a feature. Good luck!