because of the ceiling shape, i would propose you not put crown molding in this room. however, to match other rooms or make it continuous, i drew my design over your photo. anything above the crown molding should be painted the same color as the ceiling.

I would go with Design Freedom advice. The soffit makes it impossible to do a vaulted crown.

Crown molding doesn't work in all situations. Design Freedom's advice is very sound. Don't use it in that room, unless there is no way to "not use it"….

Happy Decorating!

Thanks all! I think we will not put molding on our second floor then!