I'd love to know the source for that fabric - love it.

As for paint colors, that's an awkward place to switch colors, I'd confine paint to the backsplash and the alcove where the door is. I'd go with aqua but you can go more intense than muted in those spaces so it really draws the eye. Then, with the curtain fabric, when you remove that cabinet in the dining area you have space for artwork that pulls in some of the aqua hue or floating shelves where you can pull in some of the accent colors from the fabric. I'd add a few accessories in your accent colors to the space above the kitchen cabinets and call it done.

I have an open concept floor plan as well. I am planning on pairing Benjamin Moore's Revere Pewter HC-172 with Benjamin Moore's Woodlawn Blue HC-147.

I decided I would only paint the kitchen walls that are visible while standing within the kitchen. This way the colors liven the space with it's own identity, although it avoids odd transitions into other parts of the open floor plan.

With your kitchen, I would only paint the walls to the right of the door alcove. That would be the wall the cabinets are touching on the right side of the picture.

I second what the other two commentors have said - and definitely go for a bold/brighter aqua color than a muted tone. I think you'll like it. Good luck!

I third the other two and I, too, love Ben Moore Revere Pewter.

I love Ben Moore Revere Pewter, too. It does magical things to wood that's set against it.

I have an open concept area as well- an entry hall leading to a sitting room and a kitchen . We have the Revere Pewter, Standish White (kind of tan despite the name), and some accents of Beach Glass at the back of built-in bookcases and cupboards. I love the effect.

I agree with some of the above. The aqua color should be used on the rear plane of the kitchen and alcove area. But, I would recommend a slightly muted aqua color because brighter colors tend to move forward visually and that will shorten your room, plus the muted color will be a little more sophisticated looking. To go a little bolder, you could paint the island the aqua color as well.

I think you have a couple of options, but it depends on how the wall that we can't see, just to the left of your frame, is configured. If the window wall is one continuous plane extending right into the living room, I agree with the others about taking the aqua only as far as the alcove where the door is. If, there's a bit of wall (perpendicular to the window) just to the left of the edge of your photo, then that would be an obvious place to make the colour transition. Another option would be to leave the tan paint everywhere and paint your ceiling a very pale aqua. (I agree with @brookewithspectruminteriors that a bold or deeper shade of aqua would be too much and quite jarring.)

I'm going to be the fly in the ointment and say you could treat that entire wall as an accent, running bold aqua (more like a steel blue) paint out of the kitchen alcove and across to the corner with the window wall. But keep the tan paint in the door alcove. Because you have a tan backsplash and counter, the color blocking would tie everything together.

I would be inclined to take down the hanging cabinet unit behind the table, or put a counter unit under it. If you are renting, a rolling kitchen workstation or chopping block would work well under there. Otherwise, an Ikea Hoosier style tall cabinet.

Love the color choices, the fabric, everything. Some great suggestions here.. Photoshop (and the like) is a wonderful thing. Now go test them all out & see which you like best . Be sure to post AFTER PICS ;)

Rucy is right.

Aqua, grass green and sky blue are all options for the colour behind the kitchen cabinets, and paint the island front wall as well.

We had the same issue when we remodeled our kitchen and family room. I have a shared wall between them, and we opted for BM Stonington Grey in the kitchen and Alaskan Skies in the family room (soft blue grey and very muted tan). We ended up breaking up the wall at a spot above the mantel, where our contractor built in our TV in a cabinet that's painted all white, so it seemed logical. I would also go with the muted colors, as some suggested above. Good luck-

I used that fabric to cover cushions in the living room and on a table runner in the dining room. I really love it! Our kitchen has creamy white cabinets, and we painted the walls Benjamin Moore White Down. It looks great! You can see the runner againts the wall: <img src="http://i1099.photobucket.com/albums/g390/DorotheeP/photo1.jpg" border="0" alt="Photobucket"> and on a wodden table: <img src="http://i1099.photobucket.com/albums/g390/DorotheeP/photo2.jpg" border="0" alt="Photobucket">

I think Rucy got it right..Maybe it's your lighting in the picture but I think a very muted aqua would be lost against the tan, which appears quite dark to me. I would definitely lose the cabinet to the right (my view) above the table; it looks weird and out of place. Some art that pulls together all the colors from your L/R, kitchen and eating area would be great.
My only other comment is that we are not seeing the whole space, just a little corner of it. You might be fine doing that whole wall (including the one with the cabinet we want you to take down.) I'd paint the first part thenlive with it for a week or so. Then if you like continue the paint all the way through. Whatever color you use I would definitely paint the front of the island to match.