What is on the ceiling between the beams is that wall paper? Have you checked beneath the carpet to see if there is already wood flooring? The early 70's was an odd time in building many times they would forgo flooring and leave it unfinished for carpeting to save costs. I think that home had the family room added on from the old garage and a new garage added if so the flooring may be wood in the original portion.

To start with I would prime all the walls white. It will be easier to visualize the space. The trim can be painted decently to mimic wood and there is a technique to do that http://fauxfinishhowto.com/faux-wood-painting/ However, matching the existing wood may be difficult and you may have to paint it all. Conversely you can check the architectural salvage shops to see if you can match the original which would be far less time consuming. In actuality I would pull all the trim and go with a larger richer 6 to 8" trim. increasing the trim could be as easy as adding a 1 x 3 band then stacking the existing molding above.

As far as painting the walls I would use one color and forgo the accent wall. You already have the fireplace and all the beams there are just so many places the eye can bounce.

Do you have pictures of the kitchen? Might be great to get some suggestions before committing to cabinets.

I suggest painting the garage same colour as body of house so it does not stand out. Plus this will make your house look larger, rather than chopped up.

Can't see your front door. This should be a welcoming colour, different from body of house & trim colours.

Glidden Hawthorne Yellow? A sage green?

Thanks for the feedback! I will no longer paint an accent wall since the fireplace will be the focal point. I will look for larger trim as well! We already started gutting the kitchen and added 4" can lights and will install 2 pendants over the island. We install white cabinets with a charcoal gray (high gloss) island. The problem is that the cabinets will have white crown molding whereas the breakfast nook will have brown. Will it look weird? I though since the cabinets and breakfast nook are on separate walls, I can treat them as if they are separate rooms though they are both in the kitchen- so the two trim colors may not be an issue.

We started gutting our home and learned that there are no hardwoods under the carpet.

Here are some additional pics of the home..we have double door entry, but eventually the wood doors will be replaced (poor gutters allowed water to damage the doors). We will replace them with wood doors with glass windows mixed in. Also, we need to replace the yellow windows on either side of the doors. The contractor just replaced the roof and will reprint the home with a rich chocolate paint.

Looks like I cannot upload anymore pics:(

You aren't getting the attach images link at the bottom of your post? Make sure the Image is in the proper format. IE Jpg PNG Gif. Even though the rooms are separate walls you want to keep the trim the same throughout the common areas of the home. In rooms that are singular such as the bedrooms you can opt for a different type or a color.