Redecorating!

So I've been itching to redecorate recently. I'd like to incorporate more antiques and vintage items in my "pottery barn-esque" style of decorating. I'd decided to work on the foyer and the dining room.

Our foyer is grey and small and has horrible lighting (love the environment, hate the way the energy saving lightbulbs look. My wonderful handy husband recently titled the floors for me and his latest project is adding picture frame molding underneath the chair rail. I love how its coming together. My problem is decorating the rest of the room. We inherted this picture from my mother in law and while I love the picture, I'm not sure if I love it there. Any suggestions? Also, I'm not sure if I want to paint the lower half white or leave it grey and keep the picture molding white.

A few looks I like...
 
Image via Worthington Mill Work

We're also planning on doing the same thing to the dining room. I'm thinking of repainted the dining room also. The colors didn't turn out the exact way I wanted.