is the door with the towel bar a linen closet?

Is there another storage closet out in the hall or is that it?

Do you want a tub/shower combo or is losing that closet and installing a shower in its place an option? (that would be more money)

Is a tub a necessity?

I don't have paintshop but I don't need it to know that anything would be an improvement. :)

Gut everything. Put in a new tub, vanity, sink... a storage cabinet where that door is...

If you stick with a neutral tile and a light vanity, the sky is the limit with shower curtains and towel colors.

My sis-in-law has a small room like yours and she changes her shower curtain every season.

You could easily redo that entire bathroom for under 5000.00.

What kind of style do you like? You should go through the gallery and other pictures on this site (and elsewhere) to find what you like. Contemporary? Spa? Rustic?

How 'budget'? $500? $5,000?
Can you replace the tub enclosure?

If your budget is under $500, I'd replace the shower head, shower curtain, bath mat and hardware.

Is the door with the towel bar a linen closet? It is a storage closet. There is another one across from it, in the bathroom that is like a small regular closet.
Do you want a tub/shower combo or is losing that closet and installing a shower in its place an option? (That would be more money) I really need a tub / shower combo and enclosure in this bathroom.
I don't have paint shop but I don't need it to know that anything would be an improvement. :) I know what you mean, but I really need some help / direction.
If you stick with a neutral tile and a light vanity, the sky is the limit with shower curtains and towel colors. Help me choose some tile!!
I like either Contemporary or Spa.
I have looked at other forums but really need help. I thought this would be the best place to ask for help.
Thanks...

Just losing that scary wallpaper would be a huge improvement!

I know there are some talented people on this site. What color to paint when I lose that wall paper, anything??

you can find and get here more types of your Bathroom Design in affordable prize

Here is a link that might be useful: Bathroom Design

i think the first thing i'd do is take down the wall paper so i could get a neutral view of the room. then decide what kind of tub you want - acrylic, cast iron etc. and then call a few contractors to get estimates.

it does look like some of your caulking is missing around the tub/wall edge which might mean water damage below.

then I'd go from there - will depend on how much you have to spend and what the estimates come in at.

if that works out then you can decide what tile to use etc.

floor looks ok, gonna keep that?

you'll also need to decide what color you'd like to decorate in - maybe you could go with a favorite color on the walls - blue? green? or stay w/beige and put color into towels, shower curtain etc.

Here are my thoughts: first, before doing anything, strip the wallpaper and remove that shower curtain, then re-evaluate the bathroom. I think without that huge overpowering pattern you might be able to get a clearer picture in your head of what you want to do.

You said you are budget-minded, so does that mean that you can repaint the existing interior doors and save money by not getting new doors? That is an option.

If it was me, I would tile the shower area using white tile (to match your existing toilet/sink), use shower doors, and get rid of the tub. I would keep the tile floor as it looks to be in great condition. I would keep the interior doors (if they are structurally good), repaint them, and replace the hinges and doorknobs for a newer look. I would replace all switchplates for the same reason. I would get rid of the towel bars and replace them with hooks on one of the walls, and I would save my decision on what color to paint the bathroom to the very end.

Another approach is to just replace the (apparently) beige tub and surround with a white tub and surround to match your sink and toilet, and install a curved shower curtain bar. That is a cheaper solution (shower doors are expensive) and you can choose a shower curtain in a light, less overpowering color/pattern to open up the bathroom space.

But seriously, you could get huge makeover impact for less than $500 simply by painting the bathroom a warm neutral beige (same color that's in the floor tile - BM Tyler Taupe might be an option here); replacing the shower curtain with something in the same color family; removing the throw rug, wooden stool, towel bars and picture; preparing and repainting interior doors and trim (including replacing door hardware); and installing towel hooks on the doors.

Good luck, and have fun!