Here is a great remodeled kitchen/dining room of a mid century modern home. I love the Marimekko art on the walls and the table and chairs in the dining room are FANTASTIC.
If this were my house I would still most likely paint the wood paneling white or get rid of it. But, I can honestly say I don't mind the wood paneling in this house too much. It somehow works in the overall design of the space. What do