Ideas please...with a BIG Texas Smile
I need a complete overhaul. I would like a warm inviting space. I use the area near the window as an office and otherwise its a dining room. I don't want to sacrifice style for function I would like merge the two.

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If you have extra budget, using some nice dark containers for your office supplies will make the space look sharper and more organized. Pick a color that nearly matches your desk. If you buy an extra box with lid, you can dash all the desktop stuff in it before entertaining. Look at Target if the Container Store is too expensive.
If that works, I would suggest a colorful rug under the table and 3 drapery panels (95/96") hung high and to the wall, plus one panel in the middle. Add a patterned fabric on your dining chairs. And a light fixture that is large..many lights..but simple and modern in design http://www.lightingdirect.com/forte-lighting-2374-09-contemporary-modern-32wx34-5h-9-light-chandelier/p1232543
Loving the bench and the mirror(s).
Okay, I'm going to throw a couple of ideas to you. Feel free to chuck them in the bin if they won't work for you :-)
I was thinking: moving the office space and the dining table around, so the dining room will be near the window. You could perhaps place the bench against the wall, so there'll be more space behind the chairs. Not sure if the dining table will then be in the way of the opening in the wall where I'm guessing the kitchen is?
Where the dining table is now, you could for instance place one of those computer armoires that Barabara Griffith suggests. I'm worried that if you put one of those near your window, it will block too much light. But perhaps not.
If that won't work, you'll need a workspace under the window that offers more storage. Ikea has perhaps some good solutions for you. Check out the Expedit line from Ikea, or Hemnes which has more of a dining room feel.
If you browse rooms and look under 'home office, it will maybe inspire you.
I do want to see one large blind that covers both of the windows first. Does not have to be fancy. Can be bamboo or wood slats or anything, just needs to one big one.
How high is your ceiling? Cause I would love your curtains to come from the ceiling. Are you anywhere near a Restoration Hardware Outlet? They sell long and oversize wide panels that are lovely and affordable at the Outlet. Check their online site for the look.
Keep browsing on here. Post photos as you make progress. Take care.
Here is the link to Restoration Drapes Page. Lovely ideas but spendy indeed.http://www.restorationhardware.com/catalog/category/products.jsp?link=BrushedCottonTwillDrapery&categoryId=cat1760008
Sometimes you can make a room look so much better by just tweaking some little things. For instance: my own living room. A couple of weeks ago I finally put a large tray on my coffee table and put the remote control, the coasters, reading glasses, you know... the little stuff that was just lying around on the table, and a vase with flowers in there and you wouldn't believe what a difference it made to the whole feel of the room. Amazing for such a simple solution.
So, de-cluttering your workspace and your windows, adding some nice lamps (wouldn't add a rug, you don't need it), some nice art (browse www.etsy.com) will make your room feel so much better. You can take it one step at a time.
Keep us posted please and if you have doubts/questions throw them at us :-)
Good luck!
http://www.potterybarn.com/design-studio/articles/by_home_offices.html
I was thinking a light blueish grey, but you'll have to do try-outs in the room and look at them in different lights to see what really works.
Calm Paint
and if a warmer shade appeals to your more
Mayonnaise OC-85 Paint
But I'm going for light colours, because your rooms seem a bit on the dark side. Which has probably something to do with the photos being taken at night ;-)