I am actually painting my bedroom a very similar color to that light blue, with white molding... my furniture mostly isn't dark wood like yours... but maybe I'll take some pics and post 'em on flickr for you when the job is done.

My solution for light and privacy is to put up two layers of sheer curtains. (Or curtain sheers. Whatever they're called.) With both closed I feel like it's enough...from the street all I can see is light and shadow. And there's plenty of light that can still come through. Then I also have the option of having only one closed, or both open.

I'm also not a paranoid person, and feel if peepers do come along they will probably choose someone more interesting/attractive than me.

Kelly, I definitely want to see when you're done! mollysusie, I like that idea. We're less concerned with peepers and more with people looking in and then breaking in...but I guess that's what alarm system is for. Neither of us has ever lived this close to the ground in the city before (well, I lived underground/basement level once, but that didn't really count).

New reader. Hi. We just bought a Bklyn house last year and remodeled. Our ground floor is our living room/entry much like this, 8 ft ceilings and all. We used a very similar color combo, though our overall effect is more modern than you are after - black rather than brown, etc. Pics here: http://www.flickr.com/photos/wesg/sets/72157604774429570/

The first pic in the set shows the living room and kitchen. The back wall is a light blue (Arctic Blue, I believe). All others are white. It's important in a room like this with low ceilings and just one window on front and back of house to have LOTS of lights. LOTS. We did TONS in the living room and it's great. I thought we were being crazy putting in so many but husband and my parents were right. We did not put in extra recessed lighting in the kitchen and I totally regret it - that back bit near the windows gets super dark at night and the kitchen feels shadowy when cooking as a result.

And we also did the two sheer curtains on the front window. It's been nice - you can choose how much visibility you want at any given time - one layer or two or none.

paint the ceiling light, very light blue(almost white), cream or white. It should help make the space feel lighter, brighter and bigger. fun!

silly me

Hey, Cor. There are actually a ton of inexpensive window treatments composed of natural fibers that will allow light to filter through. I was actually pleasantly surprised at Target's and, dare I say Walmart's selection, which, of course, I only hit after I had made the rounds to a ton of specialty (and decidedly more expensive) home stores and wasn't finding what I was looking for. We had our living room walls painted in an earthy tone with white trim. Once we moved in, we realized that the color absorbed a lot of the natural light in the room, despite the fact that we have 65" of window stretching across the front wall. The window coverings are light and translucent, but not to the extent that privacy is compromised. I am so excited about your new place!

I love the blue, it's fresh and elegant.
The blue will be enhanced and warmed, by your wood floors
Soft white on the ceiling will feel taller.
Natural fibers on the window are great, as they give light and also privacy.
A Boston Ivey growing on the outside wall would look amazing.
We are excited for you and lex.

Your eyes will look beautiful in that room!

I prefer warmer or deeper colors. Also blue specifically is supposed to make rooms feel colder (not sure what that means, but I have read that before).