Drywall over it ,but really just go ahead and paint it ,you will be glad you did.

Paint the stair post BM Dove White and the Rail BM Jet Black,instant update

Try getting some grommet style curtain for beside the fireplace and also the window on the left ,hang them high so the window looks larger ,add roman shade that look like wood.

Heavens to Betsy, this took forever! Mainly the problem was trying to find an occasional chair that I liked and would work with these colours, so wherever you go shopping (for anything!) my sympathies are with you.

Please don't do anything to the fireplace for a while. It may just be that you need to get used to it. It really is very handsome; beautiful brickwork in good condition. So I've taken it into account for my selections but also kept in mind your feeling that you might like to have grey walls.

My thinking: your arched windows have a slightly period feel, so I thought it would be nice to have a wall tapestry above your sofa -- but not a medieval one, so I really liked this Van Gogh image.

The rug works with that, for me, also being slightly, but not toooo, traditional. And yes, I finally found a chair I liked because you will really need a couple more chairs in that room. If you have guests as it is now, they'll have to sit on your laps. Which could be fun, I suppose, but it's not quite the way things are supposed to be done.

I also spent a bit of time looking for a vertical (portrait format) painting to go next to your TV, but I didn't find one I liked. It wouldn't have to "match" the Van Gogh in style, but it would have to generally tie in with the colour feeling in the room. That is, I wouldn't choose something in turquoise and pink with this lot, you know?

The nice thing is that these colours work beautifully with grey walls as well as with the walls you have now.

I'd also think about drapes for the door ... maybe. Probably.


Vincent van Gogh: Wheatfield with a Lark. 53" X 38".
http://www.qualitytapestries.com/servlet/the-1713/Van-Gogh-Wall-Tapestry%2Cvan/Detail

Rug: http://www.rugsusa.com/rugsusa/rugs/surya-cae1029/beige/158CAE1029-10014.html

Chair: http://www.wayfair.com/Pastel-Furniture-Eurowayne-Chair-EW-171-QP2738.html

Get a bigger media unit and some chairs.

http://houzz.com/photos/669566

I would drywall over it and add a mantle with a piece of art. Add a large media piece and move the sofa in front of the fireplace with a larger rug and some chairs. I wouldn"t cover the arch windows unless you need the privacy. if so i would do blinds in a soft fabric on just the window itself and also a nice soft fabric vertical to match the windows. Needs lighting, accessories and plants.

I would suggest adding a stone veneer to the fire place with different grey shades and on top of the stone a white shelf to give it some contrast.. You can hang your tv on top too.. As far as walls color, I would go with very light grey if you go with grey stone veneer.