Thank you for your help, I had never questioned my taste until a recent visitor commented on my lack of color! I like the look of the mongolian lambs wool cushions-have not seen here in New Zealand, I will have to search. Thanks for the reminder about mirror, it mostly does reflect the dresser but yes the doors are focal too, I hadn't noticed. I used to have more height on the living area coffee table but when I removed the Television and hung the vintage ceiling tiles (photo attached) on the wall the height interrupted them from another angle (not photographed). Our house is located semi rural with bush and water views, with this being quite focal in the lounge (with the wall paper) which is why I have not hung art. With this (as photographed below) would you still hang something? Really appreciate you all taking the time to answer. Thanks.

Here it is (but I'm guessing it will be available from more places): http://muralunique.com/index.php?route=product/product&path=53_56_77&product_id=937&sort=p.price&order=DESC

Mona you have seen exactly the dilemmas I'm facing with this room so I really appreciate your comments. I was focusing on no1, but really 2 and 3 are on my mind too. In terms of getting some continuity between the rooms I was planning on recovering the dining chairs in a fabric to tone with cushions/throws on the white couch, ottomans in a matching tone, and pulling this colour scheme through into cushions in the formal lounge. I love the spring colours at the moment (greens, blues etc) which you can see i'm playing with at the moment but you might be able to see the painting in the formal room which is orange, red and yellow with a blue/purple base. So I'm very keen on colour and so tired of the brown carpet and neutral walls. I was also going to restain the dining table and chairs to a dark mahogany colour, and change the bar stools to something more modern. re: rug closer to sofa, I've done this and it looks off-balance with nothing else in the space. It seems to work better in the middle of the carpet area at the moment. Perhaps thats because I haven't ordered the ottomans yet. I don't want to add a coffee table to this room as prefer Ottoman to put feet up on. I've attached a pic of a rug, do you think something like this would work better? re the wall: yes this is the major for me at the moment. It is a TV room so tv and speakers stay and I wont be adding any custom cabinetry. The idea was to increase the space in this room by removing all of the cabinets and they are now in the adjoining room. The speaker covers have not been painted as I needed to work out what wall covering to apply, and colour etc. so once they are painted the wall colour they will blend in better. The idea of shelving has merit, I'll have to have a think more about that... Any other thoughts you have are appreciated.

I recently saw this episode of Ask This Old House where they demonstrated painting tiles - especially as a solution to get one through till an entire redo is possible. http://www.thisoldhouse.com/toh/tv/ask-toh/video/0,,20902001,00.html Looks like you are doing a great job!