I agree with many of the comments above so sorry if I'm repeating them but I am trying to put my 2 cents worth all together. Here goes: I would paint the room-love the colors shown previously. If your carpeting has warm tones go with the taupe, if it is cool pick one of the grayish tones. These tones tend to look much darker in the evening and lighter in the daylight which is perfect for a cozy factor. Consider adding a modern stye chandelier or pendant over the dining room table, take out the oriental rug in the dr for a more modern vibe. Assuming light control is not an issue, take down the gathered curtains. I would use identical simple panels in both rooms and go floor to ceiling. A glass top coffee table will keep the center of the room from looking too crowded, it should be about 2/3 the length of the sofa. Paint the mirror frame a champagne metallic which will accent both warm or cool colors. Now use your blue as a runner on the table or a color in some art work ; get some pillows that will use the blue, a color from the chairs and another color that is not in the room to prevent the room from matching too much. Try the rug from the living room in the dining room, move the tables around, try a modern floor lamp from Lowes or Target near the couch, try the dining chairs closer to the living room and the bench on the back wall. TJ Maxx, Target, Tuesday Morning etc all have reasonably priced large art canvases- find one you love that "goes" in your space and use it over the dining room sideboard. . You have really nice basic pieces. Start with painting and playing with furniture and rug placement. Most of the ideas are not terribly expensive especially if you do them a step at a time. ( I assume you have some budget constraints) Unfortunately the drapes most likely will not be inexpensive and I should now pay you 2 cents toward for the length of the comment. Good Luck