You do not mention whether you wooden wall will be painted or stained wood. Either way, there paint products you can use to properly seal and protect the wood either way. You should visit your local paint store and tell them what you are trying to do and see what products they recommend.

OK... but the wire wont be lower as it is fixed now. The wire in the pics below is the wall facing each other. They were leveled on equal height but the beam on one wall makes it seem a little above. But i think you guys are absolutely right that up and down lights wont look good there. I think you are right about down lights lessismoore. Would it look good if i go with two different lights on opposite walls??? it would look odd right.

I am assuming you haven't finalised your wall colours and colours of any other fixed elements. In case you have finalised your color scheme you would need to see which of these colours blend well or complement with that scheme. Assuming none of this info is available, then you could look at the neutrals which go with all colours. The white tile and the 2 colours at the end would be preferable. If you want color on the floor as well as drama, you can choose from the 2nd options from both sides or even the 1st from left.

antislip and easy maintainance tiles for exterior is the key. choose any shade, colour, size. must not have deep textures as that's gonna be tough later in use. do consider slope and drainage appropriately as terrace may lead to water proofing issues in future. make sure skirting is everywhere and corners with top part of the balcony wall is tiled properly. thanks shradha shah beescheese design