I like your furniture - do you crave new?
I wondered if you might not want to accent the dining area wall/ mirrors too? [which seems not so visible from living seating?]
It could be a special room without new curtains....one thing I just noticed: are curtains more tan and carpeting taupe? hmm..

Hi---if you're keeping your carpet, then a rug is an absolute MUST if you wish to showcase that china. Find something that has a warm-pinky-peach undertone as well as a blue. Once a rug is selected, choose a neutral for the wall colors. Find a rug... Here's one example for you. Hope this is helpful. Good Luck!
http://www.overstock.com/search?keywords=navy+blue++rug&taxonomy=sto1&ralt=sto6,sto43,sto39&TID=AR:TRUE&searchtype=Header#quickview=9183924

I love the area rug. Since the ceilings are so high, could you paint them a royal blue with a glaze of gold over it? Also carry it into the niches & ceiling in the living room. I think the drapes & carpet are fine. Color is very hard to determine on a PC or laptop.

I you get new drapes coordinate between the two rooms and hang them close to the ceiling to the floor. Use grommet headings and use polished chrome rods.

Thank you. I love the blue drapes and the idea of a rug. We will be changing the carpeting out for dark hardwood floors in the future but I have to live with the carpet for a little while longer.

I want to keep the area formal and don't feel the current furniture is the right color, size, or style for the room.

I'm leaning toward a tan wall color. I don't think I could do a dark wall color. I just have such a hard time getting a nice tan/cream color.

There are two very long mirrors in the niches.

something on mirrored wall to make it even more elegant - do you like those fancy blue and white vases? tall could look good there...

I think you already have enough tan in the rooms. The only suggestion of a dark color was one I made for your ceilings since they are so high, however whatever color you select for the walls add some of that color for the ceilings.

An inspiration photo with a colour scheme that could work for you. http://houzz.com/photos/2097998

And just thought I would share this photo because something like this would look wonderful with your china.
http://houzz.com/photos/371188

reference -- what about creams [how has it gone in the past??] and blues?

Thank you Marlene. I love the moody blues room! I think the idea of floor to ceiling blue curtains would be perfect in both rooms.

Thank you everdebz. I love that living room. Is the ceiling painted blue?

Seems so -- you said creams hadn't always turned out?

Wow! I would love to help...I love these colors and the dishes are really very nice...

mvess, when browsing I saw this and thought of you!
edited: 'go for the gold!!'
Would mirrors look good each side of fp?

Hi again mvess. You said formal right?
Well, I am thinking again about the entrance/mirror wall-- you could 'doll it up' with subtle gold tones of wallpaper or stencil, and use in niches by fireplace which Sandra suggested with paint.... I do like Natalie's rug, but if you want to highlight that mirror wall that'd seem to be first --- cause of its prominence as first thing seen or tell is it?? Oh and a solid blue rug under dining table and maybe gold-ish/crystals dangling?

This is an interesting fixture...prettier ones abound...
http://www.lampsplus.com/products/feiss-hugo-6-light-expandable-bali-brass-chandelier__2g271.html

Wallpaper over all 5 niches? only a suggestion to unify, though you are celebrating with holiday cheer... I 'searched' gold metallic and lots.... don't put tan everywhere just some hints :)

For mixing with brown furniture maybe more informal gold?

These are beautiful, thank you. I would love to wallpaper but my husband is an anti-wallpaperer. :)

oh well.... :)
here's another area rug with 1/3 inch pile height for pattern below table.
http://www.lampsplus.com/products/kaleen-taj-taj03-05-gold-wool-area-rug__6r539.html

Curious though if that mirror wall is as prominent as I think?
You are fond of cream and light blue I gather.

I would stick with a blue, gold, and ivory color scheme to compliment your china. I think red for the drapes will overwhelm the room and diminish the impact of your china. If you want red in the room I would go minimal, maybe a pair of red lamps on the buffet. I agree that your current furniture is too casual and a formal dark wood table will be fitting.

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I also like the color scheme in the room everbedz posted above

Just wondering if the LR furniture is staying because if it is would influence furniture choices in DR which you want to be more formal.

I seen this rug on plushrugs.com and it reminded me of your china. It says it has blue, sand, and off white.
I think something like this might work with DK table, off-white upholstered chairs, sand colour walls, and either blue or off-white drapes hung from dk wood curtain rods.

Something similar to this room.
http://houzz.com/photos/1697629

Thank you MarleneM. The Marshfield dining room is exactly the style I've been looking for. I love the furniture colors i. This room! Thank you.

This is good You even put the shine on the ceiling, even though it isn't as high as mvess.

@mvess, glad you like it and I just stumbled across it when browsing and thought, wow! It matches your china. LOL! Now that you have a vision, you can go shopping......