Hi - I wouldn't paint the fireplace or the mantel - particularly if it is the original, the fire surround tiling looks original possibly I can't tell from the pick. I would remove the picture rail completely, then I would build white cupboard doors and box in your book shelves then build a matching pair of door cupboards and and mount on the right handside of the chimney breast - wall mount your TV and satellite box etc on a tilting cantilever bracket with a shelf either above or below to store all your DVD's xbox games etc.. The doors are easy to make from MDF or tongue and groove, paint them white ( or cream and they will hide and safely store all your bits and pieces.) Choose hinges that you like to set it off. Then when you look at your fire place your eye will be drawn to it as a focal point, cosy in winter, lovely flower vase or plants when not in use, and by disguising any clutter and raising the eye level your room will look bigger too! - let us know what you do and post an updated pick !

I like how your bathroom is looking so far and the traditional style. I would go for a high quality, shower curtain in a gorgeous pattern. I love the ones from anthropologie for example. It'll bring some colour or pattern into the room too and fit with a traditional look. cleaning screens can sometimes be a nightmare! http://www.anthropologie.com/uk/en/search/search.jsp?searchPhrase=shower+curtain#/

I'm loving all the advice, suggestions and photos. Thanks everyone! Finding it really helpful. The ceiling must remain white because I don't want to have to paint it again. Hellish job! I really like the idea of painting the rail and skirting boards the same as the wall. Would I use eggshell for the skirtings or a matt varnish over emulsion? Suppose either would do the job? Like the idea of using a lighter shade of the wall colour above the rail. I think the white scheme looks super smart, but I might try the colour and see how it looks. Using colour in that space really appeals to me. The wallpaper idea has worked well in our bedroom, it makes the room feel cosy and personal. But, it might be too much for our lounge, which is a much bigger room with a lot going on already. The lounge window faces east so very light at one end, and very dark at the other. It's a cool room during the day, but cosy in the evening with fire lit. If using the wallpaper idea, give some careful thought to your choice of pattern. The size and repeat. It's got to work in a very short area. Would love to see pics if anyone does it though!

If it was curtains it would need to go above the rail, but that would look silly I think. It needs to be a blind, roman blind perhaps. I don't like sill length curtains either.