Home Depot has a countertop refinishing kit: http://community.homedepot.com/t5/Build-Remodel/remodeling-kitchen/td-p/4985

She's got such lovely pieces. I'm a huge fan of fiesta ware myself. I'd really play up the retro feel of the kitchen. Is painting the cabinets in the budget? Painting them a 50s color or white would really well with the blue countertop.
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Yes,my nephew does it for a living,so it can be done. Now,can you do it ???? it depends on the damage, I'm told. They always say"If you can't afford to change it, make it look like it was planned ". Meaning,go with the flow,play up the kitchens strong retro look. People pay a lot of money to go RETRO and your already there !!!! Yellow,Blue,Red and White........They say use three colors but if you like it....go for it !!!!!!!!

Yes,my nephew does it for a living,so it can be done. Now,can you do it ???? it depends on the damage, I'm told. They always say"If you can't afford to change it, make it look like it was planned ". Meaning,go with the flow,play up the kitchens strong retro look. People pay a lot of money to go RETRO and your already there !!!! Yellow,Blue,Red and White........They say use three colors but if you like it....go for it !!!!!!!!

Hi bdlek,

Benjamin Moore's "icicle" white could be a very nice color for the walls. It has a very slight hint of yellow in it, which I think would work well for that retro western look she wants. But the neutral paint color will make adding a backsplash easy when working with the blue formica counters.

Here is the paint color- http://www.benjaminmoore.com/en-us/paint-color/icicle

You should talk to someone at Home Depot and see if they have a kit for touching up the damage to the countertop.

As for a backsplash, mosaic or subway tile could be the answer. They're both modern, but I think a subway would work well for the retro feel. We have plenty to choose from if you'd like to take a look- http://www.granitetransformations.com/southjersey/products/mosaic-tiles/colors/subway/

If you don't see something you're looking for, we could always customize something for you.

Thanks, and good luck!

Yeah, the blue doesn't work. You can for sure update the counters. Here is a link that shows the steps-you'll need to make your own decision on product to use http://search.yahoo.com/Paint-Formica-Countertops I like terra cotta colorings with soe yellow interspersed Be sure to post pics as you progress and then when it is done!!

Formica countertop edges can be repaired professionally or by a reasonably handy person. Here's a link: http://fixmycabinet.com/2009/01/26/replacing-a-formica-counter-edge/

The yellow paint chips on the wall are good; start with matching the gold tones of the wood cabinets, and then pick one of those paint colors.

There are peel and stick products that imitate the look of tile. Do a search on "peel and stick backsplash tiles".

A valence made from a retro tablecloth could go over the kitchen window. Fold a card table size tablecloth twice and use clip-on rings to attach it to a rod. Or just drape it carefully and use paper clamps (those little black ones half an inch in size) in the back to secure it over the rod.

After painting, put back a few display items in new places to get a fresh look. They can be changed every month or two instead of displaying them all at once.

Thanks everyone! Amazing how much know how and information is out there. I am researching peel and stick backsplash tiles right away! Retro tablecloth valance also brilliant. Off to check out formica repair options too.

Brushed stainless steel tiles, especially in 4" square alternating pattern would look great and I believe Home Depot has them. I've read that countertop paint only lasts a few years, but might be worth trying, or maybe some sort of cover. New retro formica with a square edge is pretty reasonable, and you could maybe try adding a retro-style metal edge, although the bevel might be difficult.

Retrorenovation.com has lists of sources for retro Formica and metal banding. Lots of pics of old colorful kitchens too, and loads of countertop information Even a tutorial for how to cover old Formica with stainless steel.(still a pricey option, but surprisingly, custom can be less than the hardware store).

http://retrorenovation.com/category/kitchen/countertops/ and http://retrorenovation.com/2011/05/01/aluminum-countertop-trim-from-eagle-mouldings-and-retrotrims-com/ for metal edging

I'm wondering if a long silver metal threshold might work to cover the front face for not much $$. The chip seems like it is in the light blue--maybe just a little touch up paint would work.

If you are keeping the blue counter, my vote is for an orangy color for the walls or the more moderate yellow orange with a punch of bright Fiesta Orange/Tangerine someplace. Painting the cabinets is an option too. And I would put a high plate rail/shelf around the kitchen (over the doorway height) to display more of her wares.