Since this is a paper wallpaper I would not continue it into the shower or around the archway- if you could find a comparable vinyl wallpaper I would be more confidant in it lasting.

Love it!

I too would have a hard time justifying ripping out that vintage tile that looks like it's in such great shape.

I love your wallpaper selection to go with it too, perfect! And yes, the wallpaper will have a tendency to peel or bubble around the shower area, so for sure I'd end the paper where the tall tile of the shower area starts, and just paint that part of the wall the exact same shade of white as the paper.

I'll use shiny chrome or polished nickel metal accessories, ie: light fixture etc. instead of the brushed finish though.

Also, gray would be a nice color in this space too... maybe vanity? or mirror frame?

Liz HometoCottage.com

Sativa Jaeger Designs LLC good point! I will look for vinyl.

www.HometoCottage.com, good thoughts, thank you! Do you think it would look good if the wallpaper was put on the arch way, perhaps to accentuate the design of it? I believe that was the original vanity mirror. I thought I may save that and add a small cabinet above the toilet (also for more storage). And perhaps paint the silver light fixture and shower bar black?

i think you can paper the arch or not depending on the paper you choose. for example if you have a design that would look bad with the arch cut out, you could just go with paint there.

The light you have isn't old, and could for sure be replaced with something more charming. (have you checked out rejuvenation lighting? Amazingly cute charming lights!

Yes, paper the arch, that could look great.

I love the tile and the trim, check out http://savethepinkbathrooms.com/ -- she's got some great examples of designing around original colored bathrooms, many that actually look pretty fresh and modern.