Should have mentioned.....this is our family/breakfast room. Very casual house, no formal rooms here. Also, I was told that it would be a bear to paint the paneling because it is untreated redwood. Thanks.

I would definitely paint the crown molding (consider Dunn Edwards Swiss Coffee). Although I love wood, painting the paneling will update, lighten the space big time.

I agree that painting the panelling would help lighten the room (perhaps taking the beige from your checkered armchair as a starting point?

First, go ahead and paint the molding as it will make a big difference in the rooms. Then, if you still want to paint the panelling, ask a paint expert at your local hardware (not big store) what to use...he/she will probably recommend using a strong primer like Zinsser or KILZ first.

I just used a product I bought at Home Depot. Gripper primer by Glidden. I had to cover black walls. It really did the job!! Highly recommend!! Yes, I would paint everything;) It will feel fresh and updated;)