SFGate

Darzy Gee...I think all you need to do is replace the stove with a new stainless steel and replace your 50s diner table with a "bar height" 3 piece stainless looking bar set. Then..to me it will look updated contemporary.

Sherry Mau I really like modern, funky, cottage, contemporary styling, so when i first looked at your kitchen i really liked it. I do agree with Darzy about switching out the stove. I would probably change the red paint to something a little less bold like white or gray. change the painting out with either a mirror or framed chalkboard. i kinda like the table but maybe put in a more modern light fixture.

olldbobbi Your pictures don't enlarge so it's kind of hard to see everything. If you dislike your upper cabinets, instead of replacing them just remove the doors and paint the insides: [houzz=Kitchen]
Change the paint color on everything above the countertops to white; and change all the red to white, too. Replace your retro dining set to something more modern: Paradise Dining Set

Susan Jablon Mosaics Starting with a stainless stove is a good idea. I would also add a clean, modern glass tile backsplash to the whole wall that the cabinets are on. Then you may even want to keep the red on the other walls as an accent color (if you like the red), or change to a different accent color. A modern clean lined dining set would also be nice, maybe in espresso to match your cabinets. Not sure where the pass through to the dining area is, more photos would probably help that dilemma be addressed.

Carolina Photo To Go LLC A stainless hood with chimney above your new range always creates a wow factor. Many companies make them Cavalier has a fairly reasonably priced one.

Jacobs Woodworks To keep it funky but transition to a more contemporary style, you could consider introducing modern-inspired furniture once you get the walls and cabinets situated. We recently completed a project where we upgraded classic bend-laminated chairs for a kitchen. Here's an example of the style that might look neat in your new space: http://www.curatedmag.com/news/2009/11/19/swiss-plywood-dining-set/. Good luck!

Natalie Hi---nice space. I suggest covering up the entire red area between the lower and upper cabinets with a blended tile that has both warm and cool tones to coordinate with counters and floor. Paint the walls in the eat-in area with any color taken from the tile. Good Luck! Pics for inspiration...[houzz=Groovy Stiix in Hard Day's Night][houzz=Living Room]

The Virtual Designer- Kitchens & Bathrooms Hi- Just had a look at the other comments posted here and there are some great ideas and many that I am going to suggest too.
First and foremost the colourways: grab a few colour swatches from your hardware and look for a colour that is lighter than but of the same tone as your bench. Once you've found a suitable colour ask for a colour sample pot at 50% strength and try it out on your wall. Once you're happy with that, paint the walls and the wall cabinets the same colour so that they are not longer so dominant. There seems to be a large corner wall cabinet there and I think I'd be tempted to remove that and build some open shelves (same colour as cabinets)- less is more.
A new range in stainless steel would be great but if your budget doesn't stretch that way at the moment, try turning it 90 degrees & tucking it around the corner. Do you have the space? This would lengthen the look of the room (you might have to reposition some wall cabinets around the corner as well.
If none of this is possible, or doesn't appeal with you, definately put in a bench height table area for eating with modern kitchen stools. Place a large modern clock or similar above the dining bench.
I don't know the exact dimensions of your kitchen but I've put something together to illustrate. I hope my image attaches!!
Best of luck-