I think if it were mine I would paint the panelling but leave the beams. I would also remove the built in (?) in the fireplace room.

Oh, I love the beams! I would keep them just as they are. I would paint the paneling as well - probably white. And I agree - lose (or paint) that built-in. The fireplace is gorgeous!

I would paint that paneling, crown mould, and window trim glossy white (change the outlets to white, spray that vent white, etc) and get rid of those fussy curtains. In the other room I would paint the paneling a grayish taupe gloss to blend with the brick. I agree with sam0705 to get rid of the cabinet. I would probably leave the beams natural fand see if I liked them, maybe paint them the color of the paneling if not.

I would also keep the fireplace, its fabulous!

Paint all the trims white and ceiling white, including the wall unit. Main wall colour a light grey. Find it in the mid tone bricks of the fire place. Great fireplace. Beams all work if painted white or darker.

Here are a couple ideas for your dining room. I am not sure if you are looking for more casual or more formal design but I think these pictures would complement the photos I posted earlier...

I agree with painting the paneling. I personally like when any painted wood on walls matches the ceiling, leaving the beams as they are. The picture above posted by jax888, of the room with the white walls & ceiling has a fireplace that seems to have brick very similar to yours. But, I wouldn't paint the beams right away. If you end up not liking them left alone, you can paint them later. Maybe you can find a white that has greyish tones? It's possible to paint it any color you like, but it will be a bit overwhelming if it's too dark.

Use a great primer like Kilz and a paint in probably an eggshell or moderate semi-gloss. Not too shiny.

Those are LOVELY rooms.

Paint the paneling...either to match the wall or a few shades of a color, like gray or slate.

Fill in the gaps with wood putty. Sand sand sand. Paint the panelling white. A few pieces of trim and, "Voila!" Wainscoting!

I vote for painting the paneling too. Done it many times and never had any problems, wwwjr911 is right: VIOLA! wainscoting!

Still going back to read..thanks for all the input!
Yes, I like the fireplace, it is staying as is.
The built-in is GOING. Oh good gracious is that thing ever leaving quickly LOL

LOL Yes, the curtains are all going as well. The wallpapered room is actually a bit smaller than it appears in the pictures. It's designed to be a breakfast nook...however..it will be a computer lab for us. (home school) Just, for the record.

I would *like* to just be able to get the whole house painted one color. Keep it simple for now, ya know? Aside from the two colors in that one room. So I've continued to think of that gray color on the walls in the paneled room. The white sounds/looks nice too though. I'm just kind of scared.

I have seven children. Need I say more?

You have all given me things to think about. Thanks so much! I'm feeling more confident about painting the paneling.

Oh as for the beams...I *had* considered leaving them as is..but..I'm just not feeling it. I don't know. The problem is, we are hiring someone to come in and do this and we will be working on a short schedule. I don't really have the option of 'try it this way...then if not...' because we are having it all painted in the few days before we move in. And once we are in...well, it will be a long time until we are up for any further painting.

I'll keep thinking about it though.