FYI!!!
I just moved in recently, hences the boxes and the mirror on the wall!!!

I think if you get any advice from somebody who hasn't met you and hasn't had a chance to find out what works best for YOU then it would be bad advice. That's why good designers charge money. There is a lot of work involved in finding out which finishes to use to make somebody feel peaceful in their own home. Everyone is different! That's why most people aren't happy with what they do and want something totally new every year. No matter how designer the paint says it is, if there wasn't proper energy put into the concept then it will fail. I would suggest hiring a consultant for a few hours at least. If you can establish an ongoing relationship you will love it even more!
Good luck!

Paint everything red. Or another color. Let me know what you decide.

I fully agree with Diouxa and would also recommend you to talk it through with a professional designer before painting everything red ;)
To get a few initial ideas check out:

http://www.sherwin-williams.com/do_it_yourself/paint_colors/index.jsp
and
http://www.sherwin-williams.com/do_it_yourself/painting_techniques/

they have some pretty relevant information there.

Window treatments!! You can find awesome, colourful patterned window treatments at places like World Market (and even your local fabric store). The sky's the limit and if you hang them from about 2-4" below the ceiling and let them fall all the way to the floor, they will make the windows look much bigger and open up the whole room.

Oooohhh! Light and medium grey horizontal stripes with one bold teal stripe and a black or sealskin accent wall with yellow accessories/ artwork!!! Fun!

It's a nice blank space to work with. You could do anything bold and crazy. Here are some of the in colors at the moment. (from what I have read)

I've got similar issues with our home. I love lots of natural light bouncing around a room with clean lines, yet I love color. I would paint only one wall with a bright color for focus, and leave the others white, or maybe a nice neutral tan or taupe. Like you, I love modern style but love to mix it with things that we bring home from trips to places like Burma, India, Morocco, etc.
I would love to see what you end up doing - have fun!

Try using clay on the walls if you want a soft organic feeling but want to retain the sophistication and order. With the amount of natural light available you will also see some sparkle from the bits of granite in its mixture. It can be finished in a multitude of textures. See an example here http://dioxua.com/content/5-thirst-wine-bar-expansion-renovation

Thank you all so much for your suggestions...
@dioxua: I love the idea of a textured wall. Have never heard of a clay treatment but I will check it out. I understand where you are coming from re a designer coming in to help. I actually had someone come in, but we didn't mesh very well. It's always been my dream to outfit my first home so I would like design it myself. I forgot to add that i have designed the rest of the rooms in the house down to every last detail...my bedroom, office, roof deck and sun room, but it's the living/dining space that has me stuck, strangely enough.

@kclaurel: seems like we have the same taste. If you design your space post pics and share. As I move forward in my journey I will post mine.

@1petroni: Yes! I thought that the blank canvas would inspire me, but it hasn't lol. I love those colors, very soothing, and played with that palette, but decided to i wanted to go richer and deeper. My kitchen which opens up into the living space has deep cherry cabinets, so I wanted to play off of that.

@jtomalley: aahhh!! i love the pics, thanks for the great suggestion on how to treat the windows. I definitely will do that!!!

@poisiraisk: very helpful links! thanks much!

here is what the kitchen looks like....see what I mean re the cherry cabinets?

Hmm, yes, you definately need to go with a rich color. You could google Paint Trends 2011 and you should find some suggestions.

I always start decorating from an inspiration piece...a rug, the curtains or a piece of artwork. Find something that you love and use as a jumping off point. Then you can pull all of your colors from that piece. From looking at your pictures I would say that the green you have in the window would be a really fun place to start...just my humble opinion :0) Enjoy the process!!

Sometimes the multitude of choices are downright overwhelming! A pale palette (vanilla, sand, tan taupe) with color pops change the mood by changing the color: deep red and gold in winter, muted green & aquas in summer. Whatever you like. It leaves you with the option to change without repainting walls when you want to change the look. The vases in the window are a hot color now. Houzz did an ideabook about greens in the last few days.

That long hallway from LR past kitchen would be interesting textured, perhaps in a contrasting tone. The lights seem overlight bright in the kitchen, but that could just be the photo. Light intensity will change color moods and tones.

You wrote, "I forgot to add that i have designed the rest of the rooms in the house down to every last detail...my bedroom, office, roof deck and sun room, but it's the living/dining space that has me stuck, strangely enough. "

I imagine all these helpful people would be able to get to know you a little better if you posted some pictures of some of your other rooms, the way you did the kitchen; maybe that would help resolve the dilemma dioxua sees in asking strangers for advice. But then, we aren't strangers; we are Houzz. Why are we here, if we can't help inspire one another?

So here's my suggestion for color. I notice in the first picture you have three vases on the window sill. I am assuming that is because you like that color. I think that green is very nice and works with your style. It would also look great with your cabinets. Take those vases down to Home Depot and ask for a color match, ask for it in a few variations in either sample sizes or quarts if they won't do that - 50% lighter. Do the walls in that color. Make sure the ceiling is painted in an offwhite that looks good with that color. I am a big fan of venetian plaster or clay finishes, but I have to admit that I am lucky enough to be married to a professional, so in your space paint would probably work just great. But I have attached a picture of a bedroom we did for a client in a sagey green plaster to give you an idea how a subtle green can warm up a space and not look overwhelming. We used this same product in our current kitchen and I love it.

i agree, your windows are just dying for curtains they look naked and sad! make them happy!!!! :)

love icyhottw2ts' horizontal stripes idea too for the walls, i think it would add a lot of energy to the space (i'm not into the suggested colors but that's personal preference, pick colors you love!!)

good luck

It's almost there, your own space!
Paint the end wall RED or LIME GREEN, then hang up that television set on the wall. Place the sofa directly opposite the TV, straighten the nice graphic carpet under the sofa and place chairs perpendicular to the sofa across from each other. I see the sofa is actually a sectional...oops! I would still push them together creating an L-shape that probably would separate the kitchen from the living room area.
The large mirror could go in the space between the windows or in the dining nook. I'd place some large pieces of art [could be poster or photos] between the windows.
Paint out those cherry cabinets in the kitchen an off black color, not shiny though. Paint the three wicker baskets sitting on tope of the cabinets...red like the wall or use the baskets in the corner of the living room or beside the couches for storage. Looks like you could use a floor lamp by the sofa too.
Send in the "after" photos when your project is done...if you dare:)

Like nluker, the vases on the window sill gave me a clue that you might like green. How about adding chartruese and eggplant to your neutral palette? Check out these two photos for some ideas. The first one has a global vibe. The second one is an exciting way to combine colors.

I like your black and white graphic rug and if you use black and white as a jumping off spot...a lot of bolds color would look terrific with it. I have black and white as my neutral base and recently painted my walls turquoise. I love the look. I also had slip covers made for the cane chairs (they are vintage..so is that orange fabric on them) and have additional pillows...so I change the accent color often. I also use hot pink, yellow and lime green accents by switching the slip covers and pillows. I was debating wall color between turquoise (the color does not come across well in photos...it's a true turquoise and not baby blue), granny smith apple green and yellow. Any of them would have worked well. So..first two photos are mine. Last two photos are the inspiration photos. Have fun!

well, it didn't work out like I thought. First and 3rd photos are mine. ha.

I sometimes like to repeat color on different planes. I notices that your kitchen is set apart with a soffit. I would suggest that whatever color you choose to do in the living area, you could repeat it (or maybe a softer version, depending upon the color) on the ceiling of the kitchen. You don't have much other opportunity for color in there, and it would tie the spaces together. I would also, as someone else suggested, use the long wall as gallery space - use 3 or 5 large pieces, or multiple pieces in same-colored frames (black?). For example, if you use the green vase as a starting point (which others have mentioned) paint the living space that color, paint the kitchen ceiling that color, and then use black-framed artwork on the long wall which has accents of that color.

Another idea: the end wall looks like a blank wall (no windows?). You could paint the wall in wide stripes of flat/gloss same-color paint.

You mentioned loving textured walls and global influences. You could bring color and texture in by using a grasscloth wallpaper on an accent wall.

I know you have a lot of feedback, but I think the important thing is to pay attention to things that grab your attention. Colors, objects, furniture, just listen to your own brain! Grab some color samples (they are everywhere now!) and paint some big swatches of color on the walls until you find one that fits what you're dreaming of. Once you find that color, start on the furniture. Reupholster your wrought iron chairs with animal print, or a fun fabric with great texture. I think it is very important for spaces without a definite plan (like your bedroom/kitchen, etc) to evolve to fit in with your personality and lifestyle, as well as th rest of your home. Good luck!

I think an accent wall boldly painted is a nice baby step into color. Fun window treatments in a cool pattern that plays off the accent wall color/scheme is another possibility. Good luck and remember, it's just paint - if you don't love it, there's always another color!

I agree with sbillings-- paint is just paint. Try beginning with an inspirational piece (curtains, pillows, rug, picture, etc.) to choose your color palate but make sure it's something you'll love looking at on a daily basis. If that fails then use a neutral and accent with color. Remember to have fun with paint and stay away from pastels unless it's a neutral (gray or tan). If you're having trouble with complementing colors then choose one and go a few shades lighter or darker. Also, have fun with paint design whether it's a large star burst covering a wall, stripes, a repeated stenciled quote, brightly painted window frame, have fun and make it your own. Add personality with fabric. If you can sew make your own curtains and pillow cases. If not then I'd suggest staying with a single color but using different textures and patterns so there's lots of depth yet complement each other.
Paint Inspiration:

Storklady...you rock! I agree. turquoise walls would be gorge. Window treatments a must. You want cozy... you must invest in good lighting. Will make all the difference in the world. Good luck.

Maybe you pick and emphasize a focal point? Some options: The view and the pretty windows - paint just that wall a color and use window panels from floor to ceiling.
The wall currently opposite the sofa - paint this wall or use a wallcovering (grasscloth perhaps), hang a mirror on that wall and a chandelier from the ceiling with an original piece of art hanging on the opposite wall (you will see the chandelier and art in the mirror adding to the focal point wall.

I think a wall colour of sand/beige/tan as previously suggested will provide you with the most flexibility while keeping your space light and airy. The colour group will tie in with your existing couch and kitchen back splash. Rich toned woods remind me of global style (though of course everyone has their own opinion) so I'd be inclined to bring this element in as your budget allows, perhaps a lowline tv cabinet to tie back to the kitchen cabinets.

Use textural bamboo blinds in a rich tone on the windows with breezy curtains trimmed with an exotic colourful fabric in your chosen accent colour. Incorporate this colour for pillows on your couch and accessories on your tv cabinet and dining table.

For room layout I agree with previously mentioned - hang your tv on the long wall and straighten your couch so that its opposite the tv with the sectional attached if there is room. Hang the mirror on the windowless dining room wall. Dark framed colourful artworks in your chosen colours hung in vertical arangements between the window and on either side of your tv will draw your eye up and increase the sense of space. Good luck.

I would find a cool, large, graphic wallpaper with about 3-4 colors in it, with the main colors black and white for the wall with the sconces. Then I would take one of the 1-2 remaining colors found in the wallpaper and place that on the rest of the walls into the dining area because they share a space. As far as the windows...hang window rods at almost ceiling height to balance out the height of the wall with the sconces. Add window treatments down to the floor for both windows with a smaller graphic or an accent color. You could almost make it look like you have a whole wall of windows by placing the window treatments across the entire wall. I would also make the window treatments a type of textured fabric to add some more depth. Hope this helps.

If you're looking for more information, here's a great article … just Google ... Yahoo! The Color Perfect: Finding The Perfect Colors For Your Furniture, Flooring, Walls, And Accessories … It's an easy read with lots of tips you can use on the subject.

Go for the look of a gallery space, everything painted white with bold art. Layer in color with rugs,furniture, and carry your kitchen wood into the space with a great occasional chair or bench. It's a wonderful space good luck!