I love wood paneling in many cases but it does give off a definite vibe of casual and homey and it might be smart to follow that lead. It appears you're attracted to pretty formal fabrics and patterns such as the silks, velvets and damasks....but that probably isn't going to work well with the paneling since it is a very casual look and it puts out a lot of shine all by itself! I think a cotton/linen-like nubby or woven fabric in a white/cream/tan plaid or check would really play off the paneling well and give a nice warm and cozy look to the space. It would be neutral enough (but not boring) to then do whatever you'd like with pillows "etc". Here's one I spotted at JCP...the beige/white would be classy and in keeping with the room's mood. And checks/plaids are here to stay! Featured in a lot of designer rooms nowadays. Just stay with the linen/cottons I'd say. Here is a link that might be useful: drapes

Mmmmm, I love that panelling, it appears to be very good quality, and I would definitely keep it as is. It appears that you have plenty of light to keep the room from being dark. Wood-panelled walls along with wood flooring was a staple of the bungalows of the early 20th century as well as for hundreds and hundreds of years in Europe! Personally, I think having some contrast between the floor and the wall panelling is a good idea; using an inlaid border is a great way to transition from one color of wood flooring to another. Area rugs, window treatments, upholstery (get some more color in there besides the brown leather), and artwork will add color and break up the wood tones.

http://www.allposters.ca/-sp/Water-Lilies-Nympheas-c-1916-posters_i9473229_.htm I don't think that brown would be the colour that I would choose but if you like it then look into it , looking at your furniture now I can visualize brightness in your home ,bright colours bring freshness , and are cheerful. [houzz=[https://www.houzz.com/products/glossy-black-oval-style-glass-coffee-tables-by-fab-glass-and-mirror-prvw-vr~84539016[(https://www.houzz.com/products/glossy-black-oval-style-glass-coffee-tables-by-fab-glass-and-mirror-prvw-vr~84539016)] <div><a href='https://www.houzz.com/products/bashian-grayson-gray-area-rug-9x12-prvw-vr~37276873' target='_blank'><img src='https://st.hzcdn.com/simgs/d671f09605c26fc1_3-1783/contemporary-area-rugs.jpg' alt='Bashian Grayson Gray Area Rug, 9'x12'' border=0 width='204' height='320' nopin='nopin' ondragstart='return false;' onselectstart='return false;' oncontextmenu='return false;'/></a></div><div style='color:#444;'><small><a style="text-decoration:none;color:#444;" href="https://www.houzz.com/products/area-rugs-prbr0-br~t_13149" target="_blank">Purchase area rugs on Houzz</a></small></div>

You could go 100 different directions, from lots of color to minimal color. Besides looking at photos on Houzz, Pintrest offers a lot of ideas for rooms with grey walls and dark wood floors. We recently bought a small cottage in another town and just moved in phase one.It has light grey walls and medium dark wood floors. Grey/black/white counter tops. We wanted to see how things fit in before we add a coffee table, entertainment center, end tables, lamps, etc. It's not a very big place, just under 1600 sf and a second home for us. Our color pallet for this house, is natural linen, browns, greys, and we will add in come black, and colors. The coffee table will likely be grey and I am putting a collage of old photos, advertisements, and other art on the top. It will be colorful, Here is what we have done so far. Hope it helps. Your house is beautiful. This was taken about 11pm and the lighting is terrible. There is a contractor grade boob light in the entry that casts yellow and over head is a cheap ceiling fan globe light. Sofa's are light beige linen and pillows are dark charcoal and patten is charcoal, chocolate and tan. Chairs are light beige linen and chocolate. Rug is natural fiber rug. Daytime now and boob light is still yellow cast. That will go eventually. Anyhow, entry rug is natural fiber, then dark table. Entertainment center we are considering white bookcases. You can just see the edge of the kitchen island to the right. The cabinets are white. Now enought light is coming in and we turned off the yellow entry light. Natural fiber rug between island and stove. That's all we have done so far. The two bedrooms upstairs have beds and linens and the bathroom is done. Our master is getting this wood on Tuesday (taking out the Puce color carpet). The bed is black. Will likely do some rug under is or runners. This is a photoshop pic I did of the bed and inserted it into a photo of our room with our exact pillows I bought. Coverlet shown is on the photo but ours is grey.