We finally got around to painting the living room (2 times actually, 3 if you count primer). I'm not sure I love it, but I can't figure out what else to do, so for now it will stay this way.
Here is the room as decorated by the previous owner.
The previous owner's curtains.
We removed the chair rail. It was too ornate for the room. We would have removed the top moulding too, but it would have destroyed the ceiling, so we just painted it to blend in a little better.