One possibility would be to swap the living room and the dining room. Since the current living room is larger than the current dining room you could still keep some comfortable seating (couch and upholstered chairs?) against the front wall for a keeping room/dining concept. Then your new dining areas (kitchen and dining room) and living areas (living and drawing room) would have good flow between them, which would work well both for family and entertaining. You could also add some builtin bookshelves in the drawing room or new living room to create a library area to add another fun element to the living areas. These bookshelves could be against the long walls in the drawing room, around the window with a window seat in the living room (former dining room), or built to create some separation in the open area between the drawing room and living room/stair area. Your plan seems to show some sort of builtin there, but I'm not sure what it is.

I would break it up into various rooms, approximately 10 feet by 15 feet each, though a longer one with a long narrow (2 feet?) water feature against the wall and seating and plants in the center part would work. Plants on the wall, making it vertically green. A path leading from room to room should jog, so you cannot see straight through. Change the theme of rooms, large fancy pottery, an outdoor dining area, sunbathing area if possible.

On your paint problem I can't be much help. This usually happens because of damp -- please get a damp expert to make sure that there isn't any damp lurking in your walls. I had this once when I had pipes leaking inside the walls. I didn't know that. The other alternative is something like painting before the plaster is dry or some kind of chemical mismatch. I do know you will have to scrape all the mucky powdery stuff away and start again, at least on those areas. Don't try to seal and prime and repaint until you know exactly what the problem is and how to fix it.

HI RinaI do agree I love jewelbox rooms, but I consider them more cosy ... and with a grey marble floor it goes all Versace Italianate! I am trying to balance the colours by bringing in a pattern on the covers rather than plain. I feel this will bring colour without overpowering the room. In the pictures I showed above, the rooms are basically neutral but the colour is brought in via pattern - I think this might be the way to go...Ideally a green or blue on a subdued grey would be the best, but I dont know what the market is like for Sumit...Cushions can do a lot to tie in the other white/grey elements.Shelley - navy is a good suggestion, but as Sumits area is quite tall and thin, trying to keep the general area light Any more suggestions most welcome. These are just ideas after all and Sumit will choose what works for the room in the end ;-)