The stove and microwave need to move. I'd move them on the opposite wall and center it. You will be crammed where it's at now.

What's your budget? How extensive a renovation are you interested in doing?

If you can afford it, I would frame in part of the window by the door so I would extend the cabinets around that wall in an L shape. If you removed the cabinets against the back wall, you could frame in the wall by the fridge a foot or so in order to put the fridge there, and a lazy Susan in the corner with an upper corner cabinet there. You'd end up with a U shaped kitchen.

What's going on with floor tile, and with boxes [of tiles]?

A.C.T. - I know, the walls look to be in a lot worse shape than they are. It seems as if they were in the process of being painted the cream/beige color and I'm planning on changing out the partial backsplash above the sink right now.

Delyanks - I'm not fond of the stove and microwave cornered in that area either. I would love to move them across from the fridge but there isn't much room over there either as that wall is slanted from the staircase (somewhat seen in pic).

Hayley - I'm not planning on a very extensive reno. I'm hoping to work with what is presently there, I'm just not fond of the layout at all. Extending to the L shape would be awesome but it would make the entryway very narrow. That is the front door and staircase to the left you see in the pic. Moving the fridge definitely sounds like an idea though.

Everdebz - I'm guess the last owner was just just trying to through in cheap material for a quick flip on the house and did a very lousy job of workmanship. Personally I would've tiled the entire floor before I put any cabinets or appliances in, which is still my current plan. Those are the cream colored tiles you see in the boxes. they just laid them down of the old linoleum.

Can be a problem if laid over vinyl without the proper foundation. That happened in our bathroom and apparently there was too much 'give' when we dropped I think a hair dryer, and it cracked. Vinyl isn't stiff enough...

Everdebz - Ah ok, didn't think of that. It's looking as if I may tear it all up anyways. I've got my eye on different tiles anyways. The tiles currently there were left with the house when I got it.