http://sainteriordesignstoronto.com/fire-to-the-rain.html

HI -- No wainscoting because that is just going to cut the wall in half again. If this was mine I would do the whole wall with concrete tiles in a muted Moroccan pattern . Or put some marble around the firebox and the do wood panels in Mahogany or do weathered barn boards which ever style suits you . Or do a stone wall such as the stacked ledge stone or huge granite or slate tiles or even polished concrete .