If it has a natural wood finish (such as walnut or teak), you will diminish the value considerably by painting it. However, you could reupholster the seats and use a tablecloth. I don't know where you are, but here in Southern California, Danish modern furniture is very easy to sell and can get quite pricey.

manyhosta, thanks for posting the items from Craigslist. The first post comes with a HUGE buffet/china cabinet, which I can't accomodate, but the second post is a set I think would work well. My initial impulse, however, has been to go with something new rather than antique. I just sold my dining room antique mission-style furniture that was lovely but wasn't exactly appropriate for my new space. I love antiques and still have a house full, but I'm trying to make my new lifestyle in a new home far more comfortable and practical--rather than "for show"--and my experience is that new chairs versus antiques are usually much more comfortable. Still, I think I'm going to investigate that second set you posted. If a new set, I'm willing to go fairly inexpensive. I'm single and dining room sets for me don't get a lot of heavy use. I've been looking at the Kathy Ireland Home St. Pierre leg tables and chairs. There's a good variety to this set--leg tables, pedestal tables, upholstered back chairs, or lattice back chairs--and I'm not yet sure what I'd select if I decided on it. I saw a sample at Macy's Home Store a few days ago. I think it looks both updated and traditional at the same time. It is made by Standard Furniture. Any thoughts on this set? I don't have a link but if you type in Kathy Ireland Home St. Pierre several online sources sell it.

Thank you for your replies. kew 2006: I moved the living room furniture in front of the wall unit in several different configurations. Unfortunately, it just looks awful. It is way too crowded and impractical with furniture blocking the wall unit. So I guess the issue is function vs. aesthetics. If I get the DR set, the wall unit has got to go. But since I need the storage space, I would probably buy a wall of Ikea bookcases and put them in a bedroom. Is the new DR worth the trouble?

This is what I would do; clean the most inconspicuous area possible with Denatured Alcohol (not rubbing alcohol) and a rag or 0000 steel wool - a small area. Have good ventilation. Prime with a bonding primer, dry and put on a coat of acrylic paint. Dry well and test rub. Does it come off? If it doesn't, or if it only rolls a bit at the unpainted edges I'd feel free to paint the whole set. If the whole area gives way under pressure I wouldn't waste my time. Tung oil is tough stuff.