Thanks dilly! That's beautiful and that has certainly giving me another idea. I never thought of using stone. I live in a condo and didn't want to spend top dollar for this but I think that is an excellent idea. Question: how does it look if the stone doesn't bump up against the end of a wall? Like the sides of your stone? I wouldn't be doing it to the top where it reaches the ceiling...so was wondering how it would look if its not flat against the wall? Also, I'm taking up the tile in the sunroom. Putting down laminate flooring. Thanks for the idea!

Perhaps you need a stipple brush. These are most often used for stenciling, but are also used for other paint techniques. A stipple brush applies paint in an up and down motion which might be better at getting paint into the holes. Here is a picture of two types. The one on the right is typical of stencil brushes while the one on the left is most often used on walls. I do not know that this will fix your problem, but it's the first thing that came to mind.You might be able to thin the kilz with water. Thinner paint is more likely to flow into the tiny holes. Also try using a sponge to apply the thinned paint.

I also love the current design of your fireplace... As it also suites to the rest of the interior design of your room. Even if you are going to make the walls lighter tan this theme of fireplace would be a good statement for that theme as well.

Wow! That's one of the most unique fireplace surrounds that I've ever encountered. It may not be vintage but it sure has the look of a vintage fireplace. Really hate to see it removed or covered up. Would suggest as one other poster did - remove most of what's on the mantel and on the shelving and reevaulate how that whole wall looks. Might also suggest that instead of the shelving you have on both side you have built-ins built. Might give the entire fireplace a more cohesive look. If none of that works then painting the tile is an option for sure. If you go that route remember to use a paint that not only works for tile but also has a high heat rating for use at a fireplace. Painting the surround will eliminate the color but should leave the pattern and texture which I, for one, think is a good thing. Good luck and it really is a cool fireplace!