We renovated a home with a red brick surround almost identical to this. Since we were trying to make as much impact with as little money as possible, I took a walnut stain and "painted" the brick with it. I then wiped the stain off. It darkened the brick to a more cocoa color and the red was gone. The room really changed!

Goodness - your fireplace is one of the nicer ones I have seen on houzz. I think it is elegant and more French-looking than the one you propose. Is the surround stone or wood? Maybe try getting some more color into the room: http://zeospot.com/wp-content/uploads/2010/10/country-house-room-interior-and-bookcase-design.jpg or just go for some slightly warmer colors: http://wwwdelivery.superstock.com/WI/223/1606/PreviewComp/SuperStock_1606-32474.jpg or try something more monochromatic: http://1.bp.blogspot.com/-NfDgJWHgKvQ/Txwy6vmZj5I/AAAAAAAARYs/Heok7IYutS4/s1600/ad11Le-salon_carrousel_gallery_xl.jpg

Thanks smartin1, I think I'll try that and see if its going to take a way the redness.

@HERE Design and Architecture, the the surround is wood and I painted it light brown. I am planning to make it look a bit more antique. I was going to achieve that by mixing a bit of gray and white paint with water and just brush the surface and then scan some of the corners. What do you think?

Do you think if I paint the wall behind the fireplace light blue/green color it would help?
This space is both my living room and family room, so I want it to look chic but at the same time inviting and warm. :S

What I personally like about that surround is that it looks a little like stone in the picture - kind of very simple 1930's deco. The mirror and the theatrical light add to the 'Fred and Ginger are going to dance around the corner' vibe. I think I might go for a more neutral grey/beige color for the wall and let the lovely carpet, painting and other furnishings provide the color in the room. FWIW - which isn't much - if I could do one thing to make that room more elegant, it would be to remove the throw pillows. I would try replacing them with something in a cooler palette.

You can tile over the brick limestone for a more French Country look.