We've had our share of wood paneling (good and bad) to deal with in the past. It can pose a huge design problem to many people. If you've ever seen wood paneling redone right, it adds an interesting textural surface to the walls of a room. For the mere cost of high gloss white marine paint and an ebony stain for the floor, the room takes on an entirely different look and feel.
The shutters were removed, stucco added above the paneling and the same white marine paint covers the chairs. The furniture could have easily been found used, so there is another makeover savings.