You're welcome! =) I think a shade of grey will be a great addition to the room. The red one in the photo doesn't really suit it. If you have any questions, feel free to ask! angelinavick@ymail.com

There is contrast between the traditional furniture and the focal point of the floor which pops, draws attention. I would recover the sofas in cream colored soft fabric - suede. I would leave the curtains grey, and put down a large neutral area rug. The edges of the room would show the pattern of the floor. I would color the wall and add texture to it, but not too dark as the room will appear smaller. Add a picture and put a nice plant holder, large vase in the left corner of the room - an oriental-style vase. Or, a cream-stripe fabric on the sofas. You could go soft or bold in this room - depending on your taste.

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.

You've got a great space here, and there's so much you can do with it! Do you know what style you're looking to achieve? If you've already got a red and white colour scheme going in your kitchen, you can always opt for this in the living room. Sometimes grey can make the room look a little dark, so it's always worth investing in a white base, and build from there. Maybe change the colour of the curtains to something a little lighter and richer?