New Design Challenge: Living Room

Here is the Living Room, at the beginning of our project. I painstakingly took down the chair rail myself (thanks to a razor and a butter knife!) and primed the walls. After deciding on the color that I wanted to use (Benjamin Moore Aura: Ylang, Ylang) I needed to come up with a design plan. I have been drooling over this magazine photo at the bottom of the post and I think it is what I am deciding to go for. Let me know your thoughts.