I think it behooves you to find out for sure what's beneath all those layers of linoleum, etc. If you find that there are original hardwood floors down there in salvageable condition, then restoring these could be the cheapest/easiest/quickest solution to your problem. The adhesive from the linoleum might be an issue, but on the other hand maybe it's possible to apply a solvent to easily remove it. I prefer tile in a kitchen for aesthetics, durability, and ease of maintenance. You seem hesitant to go that route based on your experience with tile in a bathroom, but in my opinion that is due at least in part to the choice of white & black tiles. If you choose tile color/pattern and grout color/texture carefully, you should be able to come up with something that isn't hard to clean, and looks clean even when it's not. :) There are some downsides to tile as well: the subfloor needs to be in tip-top shape (you might end up installing backerboard or another layer of plywood over the existing subfloor), and installation can be a real pain (and/or expense). If you end taking up everything down to the subfloor, I would strongly consider tile. It's more durable than just about anything, and it would definitely give your kitchen an updated look. I've never had hardwood in a kitchen, but I have some neighbors who regret putting it in theirs (too easy to get dents/scratches/water damage). I'm sure others are happy with hardwood in their kitchens. Linoleum is a non-starter for me. In my experience it always ends up getting gouged and grimy and needs replacement sooner than other materials. About the only advantages I can think of it are that it's comfortable underfoot, and it's relatively cheap. My opinion probably didn't help you...but you asked! :)

I am not sure how to post multiple pictures at a time. Anyway this is a picture of the 4 small rustic pendants from pottery barn hanging over the basement bar. Excuse the mess and boxes...and the bar counter we are laminating a new color....and that tv really does not go there...and..never mind there are just too many things wrong.:) Just know we are renovating upstairs and down.:) Thank-you for the above advice. I know recessed lighting probably makes the most sense, but I feel like it looks incomplete. I wish I had taken a picture without the lights, so I could post it. What do you think of the 4 lights in the old eyeball recessed lighting holes? The one closest to the window seems maybe a little too snug to the wall. I will post another picture of only 3 lights hanging.

normel, your observations and understanding of the present set up seems accurate. The remote distribution panel between the meter and house used to be a 60a cartridge fused motor safety switch. After identifying the wires from the safety switch to the house as being rated for only 30a each, I replaced it with a SquareD 100a load distribution center (HOM612L100RB), in which I installed the two 30a double pole breakers, one for each feeder (the safety switch was ruined as explained earlier). At the time, it seemed to be the safest quick-fix solution to get the power back on inside the house. (These two breakers are the disconnects for the individual feeders to the house that I wrote of earlier, manchild.) I figured that if the load on either one these two feeders were to exceed their 30a capacity, the respective breaker would be tripped at the remote panel, thereby preventing a potential fire/shock hazard due overload. Since the single service feeder from the meter box to the remote panel between the meter and the house is not rated for 100 amps, could I temporarily improve this situation by replacing the 100a breaker at the meter with a 60a breaker? I think that the #4 AL is supposed to be able to safely carry 65 amps. I have no idea how to go about relocating the replacement for the Zinsco panel outside of the laundry room. (I may have caused some confusion by previously calling the laundry room a washroom. Sorry about that.) Is there any approved method of extending the branch circuit wires so that the panel could be relocated, or is it okay to have a panel box in a laundry room? Thanks again guys, for trying to help me out with this challenging problem.

Did you ever decide what to do about this? Can you post a new picture showing the current state of the fireplace. It would be great if you can take the picture standing back about 8 or 10 feet straight in front of the fireplace so the opening appears as square as possible in the picture. If you do that, I can photoshop some ideas.