I think just removing the wallpaper and and painting (instead of adding more wallpaper) would make a big difference (particularly in the bathroom). Also, I would get rid of the current mirror in the bathroom and replace with a smaller framed type, paint the cabinet and new hardware. Honestly, I think just paint will make a world of difference in your space.

I'm quite lucky that we have quite a large bathroom for over here. There all normally so small in older homes! I have a a lot of space to fill and was only going to use the tiles in the bath and on the floor. I find fully tiled bathrooms very very confining. White wall for the rest, apparently, according to the design guru. But it's ok, I've been told when it comes time to decorate the garage I can have whatever I want!!!!

I would suggest you take out the cabinet that is to the right of the stove and use it elsewhere in the house -- perhaps in the bathroom or dining room with a hutch above it. Then, I would suggest you have someone install a lazy susan cabinet in the corner between the sink counter and the stove, meaning you would move the stove down a bit and have a small cabinet/counter top to the right of the stove. I would suggest you have the cabinets refinished in white and then paint the walls a pastel you like. If you would prefer white walls, then add white-painted crown molding and paint the ceiling a light neutral blue, such as Sherwin Williams Niagara Falls Blue. Then, I would suggest you choose a favorite accent color and use this sparingly in accessories like towels, pot holders, small vases or floral arrangements, and a valence above the triple windows. For a genuine 1940s look, you might have white ceramic square tiles with a rectangular red border installed as a back splash behind and above the stove. If you are replacing counter tops, I would suggest a light color such as white with a beige or light grey vein or striation for some sort of pattern. You might be able to find the same color and design in floor tile OR opt for a wood floor as another poster suggested.

Thankyou very much!