What a fabulous room with all of that glass. The least costly thing to do would be to sand and then paint the paneling. I like the look of painted paneling but not everybody does. As far as color, off white would be pretty to keep it light but Pantone is loving green this year! A very soft sage green would be gorgeous with all of the greenery outside of your windows. You could also take the paneling down and drywall and then do whatever your heart desires. Good luck and post an update photo when you're done!

I can't see any pics but would love to !! Sounds like I have a similar home and I am wanting to know what to do with all the wood too !!

Um, if you want you can paint the brick white and put a wood shelf around it. You can also put a wood shelf on the fireplace to help brake it up. My neighbors did this and it turned out beautiful! They also added bookshelves around the fireplace.

My daughter lives in a wood paneled cottage in the forest. Walls, vaulted ceilings, beams, everything. When she first moved in she swore she would paint the walls white. I told her to think long and hard about it because there would be no going back. The walls (and ceiling) remain wood. Her walls are covered in art and photos and there are lots of windows. I think it would have been a mistake to paint the wood. Elizabeth Campbell, whoever indeed. My daughter also has white leather dining chairs in her "tree house." They worked great in lofts in SF and LA, and, because they're somewhat classic, they look great in the cabin in the woods. Who knew such a thing?