If you are considering a ventless gas fireplace you should read the many discussions about their safety on the GardenWeb Fireplace Forum and elsewhere. Because their safe use depends on proper installation (even the log arrangement) and the ability of a detector in the unit to turn it off when the CO level is dangerous, I will not specify them. Here is a quote from Consumer Reports provided by Grinder12000 on the Fireplace Forum: "An unvented gas fireplace that's safely sized needn't pose any acute health hazard. But our tests confirm that these heaters contribute significantly to indoor air pollution. If you're planning to buy a gas fireplace, a vented model should be your first choice. That's especially wise if any household member has asthma or another respiratory ailment that may be exacerbated by particulate matter, or if your home is very airtight--and so will disperse the fireplace's emissions less readily." "A vented gas fireplace needn't cost more to buy and install than an unvented model, since some units require only a fairly small vent pipe that runs horizontally to any outside wall." "If you do decide to buy an unvented gas fireplace, here's how to ensure it operates as safely as possible:" * "Observe GRI guidelines. Insist that the contractor not exceed them when sizing your fireplace." * "Limit its use. Though occasional extended use of an unvented fireplace should pose little long-term health risk, we suggest limiting operation to no more than a few hours at a stretch, as a rule." * "Provide extra ventilation. Leave at least one window open in the space where the fireplace operates." * "Buy only a certified package. Some fireplaces are sold as two separate components: a "firebox" and a "logset"--the component that contains the burners and logs. Ask the contractor to confirm, through the owners' manual or an American Gas Association label on the logset, that the two components are compatible. A dealer sold us a fireplace firebox with another brand's logset he claimed was suitable. He was wrong; the combination emitted higher levels of carbon monoxide than is desirable until we obtained a logset that was approved for that firebox." * "Use a CO alarm. That dealer error aside, the fireplaces we tested showed no propensity to generate any carbon monoxide (CO). Also, some models claim to shut off should carbon monoxide levels ever rise. However, we recommend use of a CO alarm with any combustion appliance, including an unvented fireplace." Here is a link that might be useful: Fireplace Forum

This was a fireplace and not a new set of logs that you put into an old fireplace, correct? Vented or unvented? Older gas logs retro fit into fireplaces sometimes did this to the surround if the vent wasn't open enough.

We had a similar situation, and purchased inexpensive (but lovely!) carrara marble subway tile at Lowes (or was it Home Depot?), and tiled right over some existing tile. Voila!

This fireplace surround and entire wall is quite unique. I like the basket you used but the shape is a little off. I think instead of filling the place up with modern looking items and frames you could try to go for a more unique look to fit that wall. Rattan, wood and glass textures in light colors would look really nice here. It has a super earthy feel. I would paint the sides of the fireplace a different color than that dark sage (if you're open to it). The vaulted ceilings really make it look interesting.