What would you think about some off-white duck / navy and cobalt / pehaps something slipcovered? I see the red walls (kitchen?) just to the right of the piece, so I think I see how it ties together. Here's a fabric that would make amazing window treatments, feel a bit more updated but tie in the traditional. http://beautifulfabric.com/asccustompages/products.asp?fav=0&fpage=1&page=1&categoryID=18&productID=8314&pStart=400&recNum=487
Then you could go for one of the easy to find graphic navy rugs with a white iron trellis pattern they always seem to have at overstock in real wool - again, more transitional but works with the classics.

Is the entry door to the left of the big picture window? What if the red loveseat had its back to camera or to the kitchen across from the window since it has a higher back?
Then, you could use a washable slipcovered off-white duck kind of sofa with rolled arms - classic pottery barn (or ikea ektorp ) where you might be heading . . . a little red in art, a printed pillow, and otherwise stick with blue and white and chambray? If you want to mix, the pb catalogs / design inspiration is a great source for how to do that - you have some beautiful pieces.

You being a fan of the real stuff makes buying ikea kind of tough to recommend, but ikea has some navy velvet slipcovers now that are lovely for chairs. Bemz makes aftermarket slipcovers in high quality real linen or belgian linen blend (looks neater). Aand a slipcover means that you can always refresh or change your look - even winter to summer once you get set, and you can wash away the dog / kids / stuff - particularly when it is bleachable.

Thank you! The piece is currently out of the way in a different room, so the red is my interior garage door. I painted it on a whim and it's getting mixes reviews. So, I am looking for ways to tie it into the house more, so your ideas for that are great! I like the idea of the off-white duck sofa, but I worry it will become dirty from our kids, though if I could wash a slipcover, that might be okay. The kitchen we're installing is from ikea, so I'm certainly open to that!

Your pieces would tie in nicely with the Pottery Barn look. Go for a sofa with a skirt and two comfortable chairs. Keep your new furniture in solid colors. Add accents or repeat the dark red with pillows, throws, etc. to add patterns.

Maybe not the striped pillow and stripped rug together. One more rug.

Are these all from PB, leelee ? I like how these pieces would warm up the room.

Go with a medium gray for sofa color. That will work with your red loveseat.

Sofa and coffee table are for sure PB. I think the rugs might be and the pillow isn't. The chair is PB, too.