I think the first layout is fine. You might want to consider moving the door for the storage room of the master bedroom so that it opens into the hall. That way the kids can use it for overflow storage. Also, that hallway is big enough that I think it could hold a large armour, providing more closet space. (There's no need to sleep in the same room as your clothes, so long as they're not too far off.) Also, don't forget that while the drawing shows kids in double beds, this need not be the case, so there will be more room for furniture (dressers or whatever) in their rooms. Finally, that step to bedroom 4 will not be odd at all. I've seen it in other homes. It looks clumsy in the drawing but it isn't. What you'll see when you come up the stairs is a bedroom door on a slight diagonal. It's only an odd jagged step if you walk like a robot, in straight lines along the wall, which is what your eye is doing on the drawing but you won't do in real life.

We installed LEDs in all of our new construction recessed lighting. Love this bulb -- looks like a warm standard can light. Perfect soft white -- not the super bright white. Uses 13 watts. Bought them at Costco.

Thanks for the replies! My wife suggested we talk to a local real estate agent, so i think that is a good idea... just that Im not sure how helpful they are likely to be if we arent selling yet :) As for saving for our dream house, I dont disagree, however if doing this up nicely over the next ~5 years or so while we live here nets us some extra in the eventual sale, then that of course will help us as well. Interesting thing happened today actually. I got a knock on the door and one of the older neighbours asked if he could take some lemons from the tree. I of course said yes. Anyway he was telling me he had lived in the street for 40 years. I asked him if the house had always looked like this, and he said no that ~30 years ago the old old owner did a massive renovation and pulled off the timber and put up the bricks and gutted the inside of the house. Interesting stuff!

There are some great comment here, but my take on this would be if you are going custom to take your time and look around. Many designers offer different takes on each person's preference. The colours you have are good but I'd personally would opt for a more warmer cream, with a self print pattern. I would also suggest pinch pleated curtains and not pencil pleat as you have currently, pinch pleated curtains will give you uniformed pleats from top to bottom. In addition to this I would suggest you use blackout linen to prevent light to enter the room, and possibly interlining so that you retain some thermal properties in your fixtures. Having custom made curtains are a lifetime choice for most customers, take your time and don't settle for the first company you come across. The space above your bed i would possibly add a sheer fabric roman blind which is slightly see through but enough to give you privacy if you bedroom is situated on the ground floor. You can also get the a roman blind to match your new curtains if you'd like a more repetitive theme in your bedroom. I would suggest if you do opt for a roman blind, and you are looking for a good qualities add blackout linen. If you would like a rough estimation on what you would be looking at we can assist you so you are aware of what most reputable curtain making specialist charge in this current market.