You don't say whether you want to use it as a heat source.

If not, put a mirror in the back and candles in front.

Or stack a few birch logs with votives on them.

Dimplex, I think, makes quite a small insert, but I don't know if it's small enough since you didn't give the actual measurements.

Fireplace screen?

Did you see the recent post about faux logs from design sponge? I thought they were adorable.
http://www.designspongeonline.com/2011/01/diy-project-cardboard-faux-logs.html
Also, you might be happier with the fireplace with larger scale frames. Hope this helps!

I placed an oil painting, and a table, in front of mine. The table may be too much, but I liked the way the painting masked the opening without looking like I was trying to hide the fireplace box.

Here's the look:

http://web.me.com/westroc/Red_Shark_Interiors/Blog/Entries/2010/6/1_Antique_French_Map_on_a_Faux_Bois_frame.html

I like the fireplace... Mine is rather simple too, but with neutral stone and burnt orange highlights (NOT my favorite)... My only choice was to embrace it by painting the wall behind it something dramatic and adding a fitting piece of art. I chose a dark brown with a autumn inspired painting. It worked! People love the wall. I'm wondering if a color change would work for you too... especially given how bright and fresh yours looks. You could also see about adding some color in the grout(?) lines or changing out the floor tiles for something brighter.

I think candles (or battery powered candles) with a fireplace screen in front would be cute. Otherwise, I liked the suggestion of birch logs and votives.

I saw a show on HGTV where they did a fireplace insert from a company called InFlame. You can see what it looked like when it was done here: http://www.hgtv.ca/puredesign/theshow.aspx?season=2&sectionid=378&categoryid=7198825140205195488&postid=90733

In my last apartment, I had a fireplace in my room (also just a bit of a hole), and it made for a lovely bookshelf :)

http://www.flickr.com/photos/kicsi_paprika/4020812381/in/set-72157622483647227/

lots of beautiful fireplace screens out there... they can really make an unused FP seem like it's part of your room.
http://www.jcpenney.com/products/Cg13385.jsp

@lambgarden, you read my mind. Those cardboard logs were adorable! But I also like Dulcibella's mirror/candles idea. Get a bunch of candles in varying sizes and colors and it will look really cool.

i painted the opening the same color as the walls, set a mirror in the opening, put a statue of a cat to the left and put 2 art vases to the right of the cat. the vases reflet in the mirror, used bricks to build up a little hearth and painted those the same color as the off white mantle.

Are the inserts too small, or too big?

We had an insert that was a bit too small for the fireplace, so we just had a piece of sheet metal cut to the right size to slip around it and cover up the gap. The insert we put in was black, so when the steel was nicely blacked as well, you couldn't even tell the steel backing wasn't part of the insert.

put one or two pieces of artwork in it.

I think the problem is less about the hole and more about the lack of drama. Choose a larger piece of art (rather than the smaller snaps) for above the mantel. And @lambgarden was right about the Design*Sponge cardboard birch logs. Simple but dramatically beautiful, and a fun DYI.

1) Clear off the mantel and place a larger scale piece of art over it. The many tiny tchotchkes you now have don’t give the eye any place to focus. Replacing those with a larger work will create an instant focal point.

2) Now, apply the same logic to the firebox. Lots of candles? No. That would be the equivalent to your mantel tchotchkes. I don’t mind the empty box, but there are lots of ways to change this if you don’t like it.

Option 1= Fill it with a few interesting items:
http://designscouting.com/wp-content/uploads/2008/07/fireplace_coral.jpg
http://1.bp.blogspot.com/_2V4SjnIg0XI/SBeXYvsFGDI/AAAAAAAAAYE/nKknsXtXH18/s320/gasl_fireplace_19%284%29.jpg

Keep it simple but interesting. Fewer items, but items of larger scale. Think about texture. I too liked the logs on Design Sponge. You can also find lots of fun stuffed logs on etsy.

Option 2 = Fill it up:
http://2.bp.blogspot.com/_jjqj2eRewfA/TLXJvJ4RehI/AAAAAAAAAPc/GI4KZuBpsvE/s1600/Jamie+Meares+Fireplace+Bookcase.jpg

Option 3 = Screen it:
http://4.bp.blogspot.com/_8duoUIOQ3Bc/S_vhS87Tc1I/AAAAAAAAG3c/a1ajGGcXWXA/s640/AC+1.jpg
http://img4.realsimple.com/images/0810/white-fireplace_300.jpg

You don’t have to use an actual fireplace screen. I’ve seen beautiful screens created by hanging scrim in the firebox.

Finally, check out today’s Door Sixteen blog for some fireplace inspiration: http://www.doorsixteen.com/2011/01/20/five-years-ago-part-one/

Beef up the mantel thickness and paint the space above the mantel the same color as the fireplace (basically making it a column of color). Paint the mantel a different color than the fireplace. Then hang a large mirror or artwork in that space with a few tall candles or vases (with flowers) on the mantel.

your hardware store or recycled building materials depo will usually cut wood to size, I would make a 3 panel screen, with hinges, then photocopy any kind of design you like really, I would probably go for a da vinci sistine chapel vibe,, modge podge to the wood, then use acrylics to paint in some color, I didnt save pics but previously I would do a tea stained background and white highlights, alternatively if youa rent super arty, you could use some pretty wrapping paper.
Photocopy ink doesnt run and the paint doesnt stick to it so its easy to paint around.
Very paint by numbers kind of project. :.)
If you use Cedar panels they are lightweight and hinges can be attached using woodglue. cedar is usually easy to find at recycled building places as it was used for timberboard houses.

Just contrasting it against the wall would help a lot - different wall color or different pain on the fp. And I agree with the various folks who said "big art" - we have a big, 1930's era gilded mirror over our dull fp (very similar to yours), and it looks great.

i agree with suzee: painting the surrounding wall (i'm thinking Studio Taupe or Creek's Bend: both by Behr) will make a major difference because with the lack of contrast now, what stands out now are the small framed photos. add a big piece of art on the mantel and a large vase of silk flowers on the hearth and you'll love that fireplace of yours!

i'm quite jealous, myself! :)

I'm jealous that you have a fireplace in your bedroom! To me, it feels top-heavy: narrowest are the floor tiles, then a slightly wider fireplace surround, and the widest part is the matel. I would think about somehow making the tiles/base feel more expansive -- maybe a rug over the whole space if the tiles are flush with the wood floor (looks like they are not), or place matching wood stools to flank the sides so the base feels more substantial than the mantel.

I like the photos on the mantel but I also think a larger piece of art or a picture would be nice -- if you have any photos you can have printed larger and framed, go for it -- cluster the smaller ones around a single larger framed photo. FramesByMail is an affordable option for both framing and larger photo printing.

If you want to keep the feel of a fireplace, and it isn't functional, paint the fireplace hole's interior a dark, warm gray or brownish charcoal to pick up your wall color, and place birch logs or a clutch of large driftwood pieces inside -- or the cardboard logs suggested above, if they're not too cutesy for you and/or your partner. If you're not keen on keeping the fireplace feel, maybe a large potted fern straddling the tile and the fireplace itself. Have fun! It's a great architectural detail to enjoy.

Candles in the fireplace look great.
Use only white or ivory pillar candles of all sizes and widths. You'll probably need about 10-12. They also put off some heat when you light them which is nice.
If you live near an Ikea, they have them.
And no fp screen needed.
Also try a cute potted plant on the floor. Maybe something very hearty like a dracaena.
You also need some height fluctuation on the mantel. Try grouping 2-3 photos on one side, then perhaps on the other end, a candle stick, a cute bowl, a water pitcher, a framed piece of artwork leaning against the wall, a clock, a stack of hardback books, a figurine etc. Try something other than a boring row of photos. Look in your kitchen, in your collectibles, antiques, all over. It doesn't have to be so traditional. Do you have an old musical instrument? A horn perhaps? That could be art work!