New-To-Me Living Room and Color Palette Help Needed

So you may remember a month ago when I posted my couch for sale. I bought it after we moved to GA since my beloved crushed green velvet suffered an untimely death to a cat over Christmas break before we moved. I begged hubby to let me keep the couch and recover it. I LOVED that couch. But that is another post. *sigh*

My other couch did get sold, but not before the one I wanted was also sold out from under me. Dang those Craigslist sellers! Anyway, I held out and waited. And waited. And waited. And then ....

I bought the loveseat for the same price I sold my couch for! The couch was a bonus FREE!! (It needs a little work and has a rip in the middle back cushion close to the seam which is now hidden by that pillow. But it is from Ashley Furniture and is oh so comfy!!

Please excuse those awful wrinkles. They are only stuck up over the rod and are being held in place with a safety pin or two for this pic. The curtains divide the family room from my office which is now on the other side. I will be getting some some clips to hang the drop cloths properly so have a while "wall" there where entertaining or push them back when we need circulation into my office room (where we watch Hulu!)

I had in mind to make slipcovers for them using Lazy's Girl's Guide to Slipcovers. I'm thinking of using the drop cloths like what are on my windows. My issue is this: it is going to be a good while before I have the time and energy to make the slipcovers. What should I do in the meantime? I would really like to bring lighter colors in to the living room since the paneling is so dark. I would love to find a beautiful fabric to recover the pillows and add some *umph* to the drop-cloth curtains on the other side of the room.

I have my curtains from my old house up right now just trying to decide if I want to use them. They would have to be altered the at both the top and the bottom if I used them. The have tab tops which look weird with the drop cloth tops and well, capris are not a good look for curtains! I think I have decided I don' t love them in this house since they just blend into the wall and certainly don't help with lightening it up in there.

The curio cabinet will be finding a new home (at an aunt's house.) The side table is not quite right either - would love to paint it, but we will see. The lamp is not even plugged in - shopped the house for it! It has never been used. Bought it for $5 last summer at Wally World. Love it, but it has been shadeless until now and I'm thinking it needs a bigger/longer one anyway. And I think it longs for a coat of paint! But what color? The paneling is very dark but will not be painted as this is my husband's grandparent's house - the old homestead. Since we are temporary residents I will not even ask to paint.

I have a large mirror for the spot over the loveseat and some other decorating things planned, but it is hard to get into it not having a color scheme decided on. 

On one hand I am thinking add a cooler color to help offset the overpowering warm tones in there. I want white, camel/khaki and a shade of light blue eventually. But right now I am thinking khaki with persimmon.....not sure the blue would work with the olive? The piping on the couch and loveseat is khaki so that would work nicely.

So what would you do with this room?What colors would you use?