I would run the backsplash to the end of the counter rather than the cabinet. Do you plan to remove the existing short backsplash? If you can, I would, since I think that is a better look. With the short backsplash, you really don't need more. If your plan is to add one on top of that one, I'd keep it quite simple - maybe a darker color than the one I've pictured below, but simple.
[houzz=]

Agree totally with above comments. It's going to be very difficult to get an itty bitty tile between the bottom of window and 4" ledge. Remove back piece as it does date your kitchen.

Thanks if we removed that piece, what type of backsplash would you suggest?

glass subway tiles in white or a very light gray would look nice. Agree with those above, remove the existing backsplash first & tile to end of counter, not cab.

I would do a backsplash in glass tile with a few stainless tile in the mix. Just to pick up a little shine.
[houzz=]
[houzz=]

I would extend the tile to the window trim.

I think a light gray or off-white glass subway tile (3 x 6) would look very nice with your cabinet style and counter top. I would do the new back splash all the way to counter top (lose the exisiting) and consider doing the subway in a "stacked" pattern like in the picture. Back splash should extend to the end of counter. Good Luck!

I would take subway tile under the cabinet to the door frame and down to the floor for a complete look;)

If you use a solid color, I would not suggest yet more white. However, if you do, make sure it matches the cabinets white.

A mid-range color, between the bright white of the cabinets and the dark of the countertop, would be nice, perhaps in a greige/cafe au lait color, especially if you want to stay neutral. This should probably be a solid color (because you have some pattern in the counter), although you could go with a mix if it is VERY subtle (more like just the random coloring in stone vs. a wide mix of monochromatic tones) and a larger scale (a small mosaic mix will, again, compete with the countertop)

Here is a glass tile
http://www.decorpad.com/photo.htm;jsessionid=99B16081BEAB3B3F9088B25F1D9D189E.worker1?photoId=94227&index=20&spaceId=21

Stone backsplash (I personally think this is a bit dated looking already, but go with what you

A more interesting pattern:
http://www.houzz.com/cafe-au-lait-backsplash



Another way to go is with a dark backsplash to more closely match the countertop. I like this because it tends to make the counter and backsplash feel more like one piece, rather than a ribbon of another finish. If you do this, don't go with a glass or other smooth tile; go with something with some texture. This one, in slate, has a very nice, tactile feel.




This would be a more lively mix.


If you are interested in a color, that opens another whole area of ideas. What did you have in mind?

Is the floor tile or wood? If it's wood, I like the idea of a white or off-white subway that looks nice with the cabinet color OR something like the Hemingway's Cottage picture above. If it's tile, you'll want the make sure the backsplash coordinates with or is at least complimentary to the floor tile.

we did a stacked stone (image attached) in prior home and loved it and got tons of compliments,

pic..

Good choice julieanne!

Good luck and good wishes.