This this was my kitchen, I'd go with a glass subway tile in the lighter color of the countertop. I would tile all the way around the window to the ceiling. You'll be amazed at how much charm and personality it will add to your kitchen.

When you find some tile samples you like, buy samples so you can make sure the color works with your granite. Don't just assume they're the same when you're at the store--you want to make sure before you order it so you'll be happy when it's done.

Here is a photo with black backplash.

Follow haleydaniels advice. Keep the scale of the backsplash light and bold, no strip or little mosaics for bling. Bottles above the cooktop scare me, but then I live in CA. Also, not a good place if they're full of wine.

The paint needs to go. Unless it's my computer making it canary yellow. Sorry I know you asked about splash, keep it simple like tumbled stone subway tile.

Thanks for all the wonderful advice. Yes the paint color has to go. Most of the house was that color or bright orange and burnt orange. So I am sure what you mean Heyley...Go glass subway to match with the lighter color granite thats on the island right? Or did you mean with the lighter color in the black granite on the countertops? And what about the size? Also, what about paint color? I am having a hard time with the paint. I have already put up 6 or 7 swatches in grays and beige and nothing really looks right.

P.S. Here are close ups of the two different granite. The black is on the cabinets and the white is on the island. Thanks again for everyone's input. I think this site is amazing.

I would try to match the lighter color in the granite on the regular cabinets for the backspash as you don't want all the light to be absorbed by a dark granite and backsplash. Or you could go with the cream color in the island countertop as well. Just make sure you like how it looks with the granite on the cabinets.

Take an hour and look at tile online. When I was first looking for tile, I found The Tile Shop's website [tileshop.com] very helpful. It's a good way to see what's available, and get samples for a few dollars. You definitely want to have samples put with the granite so you can see how they look together. I found laying my countertop sample on top of my tile sample very helpful as it was the smaller of the two. From there I analzyed my colors to make sure they worked together.

One note about ordering tile online that I found out--the delivery company won't unload it for you so if you find what you like, take it to a large tile store, and see if they can order it for you. Subway and smaller tile isn't such a big deal, but the larger tiles are back breakers.

Your pictures just uploaded as I posted my comment so I want to add that if you go for a white/cream subway tile, pay close attention to how much yellow is in your island's granite, and match that. Be careful about going with a tumbled stone tile as a lot of them have a very pinkish undertone. This is why you need to buy samples so you can make sure they look good together. If you've never noticed how yellow and pink different shades of white are, grab a bunch of white/cream paint swatches next time you're at a paint store, and compare them by fanning them together like you're hold a hand of cards. It's very interesting to see them side-by-side as the underlying colors show up more.

what color do you think i should use for paint on the walls? Thanks for the advice!

I would be inclined to go with a opaque glass subway that is a light color that looks like coffee with a cream playing off the light color in the granite.