Oh yes paint bottom white...:)

I love the way it is painted already!

Thank you everyone! I am looking for a more modern look. Which colors would you suggest?

Paint color is usually last. What fabrics, drapes, etc do you have in mind for the room?

If you are going for modern, there are only 2 or 3 colors choices that I've seen in modern homes. You could go about any shade of gray you want with white or go bolder--black and white! If you choose these colors, you will have no trouble finding drapes, rugs, and so forth in coordinating colors.

I don't see wainscoting as modern...esp. the picture frame molding.