here is a simple case of lighten up. the rug is too dark and it is boxing up the room, b/c there are so many lines. Lamp shades and bases lightened up would be nice too. I would go with a natural wood blind to keep it simple, or sea grass. take the pole out of the fan and have it flush mount hung or with a shorter pole. take down the mirror between the two windows. the tv should be on the wall where the baby swing is and put the plant in that corner. paint the wall behind the bookcase a greige color to help lighten up the space. take some of the items off the mantel itself. all the small painting blend. once you move the tv hang them in a group around the tv. if you put curtains put them on the windows be the door. is there one on either side? another idea for curtains would be some simple lace.

For starters I would choose a light colored drapery to lighten up the space maybe in a creamor beige and red stripe to pick up the colors from the carpet and hang them from the ceiling to the floor paint the back of the bookcase in a lighter color you have a lot happening in this space maybe find a place to put the baby stuff at the end of the day the table lamps are too small, get rid of some of the pillows, clutter makes spaces feel darker and messier .I guess painting some of the panelling would be out of question.

It looks like a nice size room! I understand what you mean by budget...I'm in the same boat. I take it you will be keeping the furniture. Everything looks very brown right now. I'd maybe paint the paneling a beige and replace the red rug with something lighter. LIke this For the windows, on the long wall with 4 windows, you could run one long curtain rod up near the ceiling and have a panel between each window and on the ends. You could use wood dowels from a home improvement store for your rods.

The room could be beautiful with a bit of attention.

No valances. Do you need privacy or are you just looking for something to help lighten all the wood? If the former, I like plain and simple roller shades for privacy and a clean look. Otherwise Sarah's curtains above could work.

Pictures between the windows: they are the wrong size - the large one is too large and the small ones are too small.

One way to lighten a wall is to reframe smaller pictures with wide (4" or more) white matting and a light frame. The ones you have there look to be oils so maybe find another place for them and find something lighter for between the windows that you can mat and frame.

Repaint the back of the built ins a shade of white. Not stark white. Maybe also repaint the ceiling that same shade as opposed to the stark "ceiling white" it appears now.

The dark brown furniture helps the cabin feel, but is hard to lighten up. Since you don't want to spend too much maybe you could choose lighter accessories and end tables. If your end tables are of ordinary quality you might paint them. If they are antiques use them in another room and get some lighter looking and feeling replacements.

Good luck! Let us know how it turns out!

We painted our dark paneling and love it! You didn't mention not painting the paneling.....so I would paint it a light yellow...almost cream. Your fireplace wall/bookshelves could remain the same as it is now. Simple white sheer curtains on the windows, and only one rug on the floor (I see one under the sofa/TV. Rethink wall art.....you have too many of different sizes...I would try leaving only the one bigger over the small sofa.

Hi, I wanted to respond to your post earlier, then internet went down. With a new baby, the last thing you need to be doing is painting panelling as it is even more work than a flat wall. I suggest rearranging some as the furniture as already suggested, and removing all pictures/mirrors from between windows, there is enough frames with the windows themselves. At first I thought curtains, but now I think that might be too much. so I would do shades. Fabric roman shades and then curtain side panels in the same fabric on just the one window by door is another option depending what your budget is.
I think the best thing to do would be to change colour scheme by replacing rug with a lighter one. A light neutral background, with sage green or blue/grey design would look nice with the wood. An indoor/outdoor rug is easy clean and inexpensive. Then use one of the colours to paint back of bookshelves.

Your windows are beautiful. Make them the focal point. If you can de clutter which is hard to do with a new baby. I would start by taking pictures and mirror down. They are competing with the windows. I like the idea of just having some pretty roman shades. Whatever you choose please be careful with the long cords on the window treatments with a new baby. YOu do have alot of windows so you just need to be aware of the cord issue. Well I really like your windows and the room. Take your time with it and see how you like it once its been de cluttered.

For your window treatments I would use Duette shades with LiteRise (cordless). Use a light color. They offer privacy, but light will still come in. No cords to be concerned with.

A couple of visuals for you. First shows fabric romans and drapes in same fabric in one room, and second woven blinds side by side.[houzz=]
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I kind of like the lace suggestion. This room could be drool worthy, but I'm thinking more great American western lodge, craftsman/mission style and less Victorian.