Design Dilemna: Foyer and Living Room

So, now that our two front rooms are completely cleared out after The Great Sale of 2011, I am left with the opportunity to redecorate!  Yikes!  My house is decorated in Yellow, Green, and Red.  Well, not exactly those colors- more like this:

The curtains in the Living Room and Dining Room are the same with a base of green and touches of yellow and red.  The walls in the living room are "Belgian Waffle" from Olympic Paints with white trim.  We've always had a formal living room, but now we want to make it more comfortable, I just don't know where to start.  It really is a blank slate.

 

Oh, and just in case you want to know what this house looked like when we bought it, you can see more of it here!