Wow! I'm floored by all the awesome feedback. Thank you all so much for your wonderful ideas and encouragement. There is a lot to think about here and I am feeling so inspired already! I think I am leaning toward repainting. The color feels so murky even by day, I'm just ready for something lighter. The idea of light green is appealing because perhaps I could find something that would allow me to keep my drapes. I'm not feeling ready to make another investment in drapes with young children running around the house. The ideas to paint a neutral color or a light yellow are also tempting. Though, I already have so much cream and khaki and camel in the house my husband calls it "tanland" :) I will definitely look into more fabric in the sheers as well. I have been wanting a buffet/ console, but did not know where to put my cabinet. I'd have to move my table towards the foyer if I wanted to put the cabinet on the same wall as my door. Not enough room behind the table otherwise. I could move the chandelier with it pretty easily, but I'm not sure how I'll feel about the table being off center with the window. Perhaps its time for the cabinet to find a place upstairs. I also love the idea of lamps and gold framed prints that I could change out with the seasons. The rug is the Brice rug from Pottery Barn to the person who asked. It looks like it is no longer available though. There is so much to think about here. Thank you all again for your help. I'm still open for more feedback too if there is anyone who has more to add!

An update. The whole thing came down. After removing everything from the room and laying down drop cloths to protect the floor, we removed the screws we had put up and about 1/4 of the ceiling pretty much fell. Testing the whole ceiling showed very little if any fully intact keys, it pushed back into place everywhere, meaning it was failing everywhere. I think we could have saved it using the adhesive, jack and plywood method I have read about online, but we don't have those tools, and were worried drilling any holes in would cause it to come down on us. I am going to try it on some walls once we get to them (about 1 out of 4 walls has detached at some point, and I have no intention of ripping those out, but rather saving them). The wallpaper was really acting like a structural element on the ceiling, in some cases just pulling on the wallpaper brought the whole thing down. Which actually scares the crap out of me, since this is our bedroom, and the kids are always in there jumping on the bed (just under DISASTER!). From the other ceilings in the house I have pushed on this was the only one with this problem. Another has a crack down it, but feels solid. I know the house had water damage at some or many points, likely the roof, we also get lots of snow and I know houses here have to watch out for ice dams, but this spot was not in a corner near any roof joins so I don't know how it got so damaged, but it seems like the damage had been there for a while and the wallpaper was holding it up, and just all that weight slowly took it's toll on it. That and probably the kids jumping from the bed to the floor in there all the time. I have been shocked at how many things have fallen apart so quickly with us moving in, the house has never really been un-lived in, though the PO was not living here full time for the past 2 years, but the house has not had kids in it full time since it was built and maybe the kids (and us) are just harder on it that older couples? We also discovered a bathroom leak that has been slowly dissolving the drywall ceiling in the downstairs bathroom... found that the same day we took down the ceiling in our bedroom. We have been in the house less than 6 months it's a bit worrisome. The house looks so nice, the PO had really focused on the aesthetics more than the real mechanical details I think. sigh. Thanks for the advice, esp. the warning about hard hats!! :)

I have lived in 2 log homes. I understand your problem! Do you have any interior stonework also? Last time I was in this position, I tried to pull the base color of the rug from the lightest tone in the stone on my fireplace, so that I didn't end up with too much going on. Jewel tones do seem to work well, also. I like the last 3 you posted in the comments. It is really hard to pick unless you can see the rugs in person, too. I ended up ordering my last rug through a local furniture store, where I could see and feel samples. They ended up being very competitive on price. I tried ordering online first, and the colors always seemed a little "off" once I got them rolled out in my wood-everywhere house.

Okay, just remember: Solar tubes are pointless at night. So they don't really solve the problem (just on sunny daytimes). How about this: Move the door forward. It's not difficult, not expensive, you'll gain a foyer, you could cut a door through to the garage and maybe open up access to the living room, and if you leave the door set back 2 or 3 feet, no real weather complications. It's what I'd do.