Thanks everyone for your great suggestions. I think I'm think I'm going to lighten up the walls and changeout some of the seating. In another post, I have asked for help with configuring the furniture. Combining all the ideas and suggestions for colour and adding texture to the room, I think I will paint this piece either a high gloss red like in the picture i found on houzz.com and Gabberts Design suggested and if I hate it, like a few of you suggested, I can either repaint it, sell it for a bit more than my $13 I paid for it (that was the full asking price at the thrift store - actually it was $12.99!), or give it away and nothing really lost except my time and cost of paint and primer.

Kklinton, love the yellow but hubs would never go for it but I may surprise him with the red! ;)

Handyman, the rest of the walls around the main floor are light grey. I've tried painting the dining room walls once a deep red and had such a hard time even with two coats of tinted primer, I vowed never to try reds again! If I lighten the room to a medium shade of grey, will the red be too bold for the space?

Jayme, the top is veneer. The hallway table in the background is a piece that I restained myself which is veneer and I had no problems after lightly sanding and then two light coats of primer and three coats of stain.

Elklaker, The water stain unfortunately, is on the right side of the dresser and as you can see from the pic, it had spill over onto the top drawer pull and therefore the entire piece has to be refinished. I will spray the pulls nickel as patti suggested.

14thstreet, There is grey in the carpet but someone suggested that maybe I put a larger rug in. I'll keep my eyes open for something I like and can afford. Sam, the floor are actually much darker with a reddish tone than the piece and would probably clash. It also looks too oaky for my liking.

Thank you all again for all your help! I will post the finished piece as soon as its done! Have a great weekend!