Greys would look good in these rooms. I wouldn't paint the paneling. Rather than a mirror over the fireplace a large scale painting would look good.

Oh so cool you noticed that we're trying to achieve a french country/industrial look or did we write that somewhere? I've attached some other photos of a bedroom and the foyer (of those we've taken so far), but are absolutely open to suggestions on a "beachy" feel as well or instead of. Although because its a beach house we don't want to go over board on expense and hence keeping what we already have, and just adding personality to it, if you get what we mean. Kingsize Black upholstered headboard to come in that bedroom.

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:

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.