If this is the bath you will keep, toilet, counter, cabs, leave the wallpaper.

It certainly goes perfectly with the rest of the bathroom, but I think some of it is too far gone to even call shabby-chic. I can't see enough of your bathroom to gauge the layout, but could you remove the really bad area around the bath and shower and paint that in the blue.

The wallpaper looks worn out. If you really want that look, then you should be able to find a "new" wallpaper in a similar palette and/or pattern (yellow and blue are still a popular combo). Vintage does not mean torn and yucky.

kb - unfortunately these vintage colors aren't available in today's wallpapers, already tried!

olldroo - unfortunately there's too much damage on all the walls to try to patch any one area :(

sadly, just painting won't have near the cohesiveness as this paper, but looks like the way to go... thanks for the feedback guys!

Not a perfect match, but for a couple of minutes on google not bad.

kb, amazing! i was looking at my local design center {wanted to see in person} but this is scary close to the original. thanks!!!

sarry - perfect idea!