I think since budget is an issue, get a craigslist dresser you like (something with legs) and paint it an accent color. But, it looks like you could use color. How about getting a fabric you love and freshen up the dining chairs. Then, you can pick a color from the fabric and paint the dresser that bold color. Here's an old dresser painted. Seach "painted dresser in dining room" and you'll see lots of fun ideas.

I agree with Darzy. Find a large piece of furniture which will give the space more character than a built in and still give you a lot of storage. Please nothing skimpy. Then hang a large scaled mirror above and maybe and candlestick lamps at each end. Place a big tray in the center with a collection of bottle, decanters and glasses. A large area rug under the dining table would warm up the space (approximately 3 ft. off each edge of the table). If you can pull the dining table away from that high window it would be nice to place a narrow console under that awkwardly high window. This might require moving the chandelier a bit as well to keep it centered over the table. It looks a bit cramped against that window wall.

PS..A roman shade for the window, mounted at the crown molding, stationary or working. Pulled up enough to just cover the top trim of the window. It will make the window appear larger-taller.

Thanks for all the great ideas. Got a colorful rug today. Looking around for a painted buffet. We will hang the mirror above and also some floating shelving to store and display.
Where can I purchase a roman shade like you describe? And what color to match my brown (inherited) walls? I will also try to reupholster the chairs to add color. Thanks again to all.

ohhh aahhh! I like your new rug. I think floor to ceiling panels for the windows would look great in here to soften the space. Be sure to hang the rod 6" past the window so the curtain panels are as wide as the table/chairs. happy hunting!

How about a sagey green faux silk for the windows? Since you have color and pattern on the floor, maybe you can live with the chair fabric.

Great suggestion, but because we have a baby, can't go with that. I worry they'll get either pulled down or covered with food.... How about the roman shade idea in your color?

I understand! Not diggin roman shades because the window is small for the space/furniture. Thinking of something more fun..... hmmm I'll think on it. :) Plus, other Houzer Pros are better with window treatments than me. : )

suggest you look I to Annie Sloan Chalk Pant for your painted storage item. Go to Goodwill and have fun girl!!!

Love the rug. Look in resale shops for small chests/dressers/credenzas..very inexpensive choose for size & shape. Then paint it yourself..really easy. Regarding the window, To me the window is too small for side panels and I did notice you had children. I would still look or make (a JoAnn's can help) for a roman shade, again mount it at the ceiling. Make sure it is at least 2-3" wider on each side of your window. Choose a color(s) from your new rug, I like the green. A solid color with darker wide banding. If not..how about a woven wood roman shade. They are quite inexpensive from Lowes.

Or, for the window, you could do bi-fold shutters that actually open/fold on the outside of the window. That way, you can close completely, or leave the shutters open on the side of the window to make the window appear wider. And, it will "dress" the window. Or, a sliding style.

I wanted to thank Everyone again for the terrific suggestions. Today, I recovered the chairs with new fabric. I plan to keep a lookout on craigslist and at secondhand stores for a piece of furniture that we can paint and use for the bar. The suggestion for the chalk paint was outstanding. I never knew it existed and I will definitely do that. We are thinking of painting it either Sage green or robins egg blue but distressed.

As for the window, I really like the idea about the shutters. A white wood blind would look good too, I think, but can't be sure.

The last thing I need is to change the light fixture. I am considering a pillar candle style round chandelier. Also the fixture is not centered over the table, so I will have to try to come up with a way to do that, or If it can't be done, I will remove it completely. (We also have recessed can lights in the room).

I'm attaching new photos showing the transformation in progress.

Thanks everyone!

I'm noticing how hard it is too see the chair cushions in the photos I posted.

Have fun with more color picked from your rug or chairs, and when you find the right piece for your wall paint deeper shade. Don't move the light completely, you can use a hook to center it from the chain.

You can center the light fixture with a chain and hook from the ceiling. It's done all the time.

Garnatmom and njmomma do either of you know what to do if there isn't a stud there to attach the hook? Thank you.

If there is not a stud you can install a molly bolt and hook (wing bolt thing). You shove the bolt with the wing in the hole, and when you "screw" it tight the "wings" clamp down (above where you can't see) on the sheetrock and holds securely. 99 cents or so. But, for $50 or so, you can have an electrician move the box over (which I like better).