In the 1990's, the previous owner converted a porch to a family room, with windows on 3 sides. The ceiling is angled, with beams and not much insulation. And the lighting is a couple of feeble fixtures attached to a couple of the beams.

As part of a upgrade, I'd like to do something to the ceiling, both to improve its looks, but also add some insulation. And especially FIX THE LIGHTING. My contractor is suggesting sheetrock over some insulation, and high hats for down-lighting. What do you folks think? I think I like two hanging fixtures -- casual? modern?

And, while you're at it, color suggestions? My first floor is otherwise a large open space, walls all white, decor eclectic transitional mishmash.