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What's a good way to deal with dark paneling?
Hey, Ken & Regine- You have the right idea in mind to introduce a light and airy color scheme into your small space. If you like the look of the paneling, would you be interested in painting it? Prep work is key when it comes to a successful paint job, so visit a paint store in your area--I shop where the professionals shop when I'm doing a job myself. I know the folks working there will be able to give me the best advice for my project and recommend the best product (when it comes to paint, this is not something worth skimping out on--buy the best you can afford).
As far as color options go, have you heard of COLOR A ROOM on BHG.com? That's a fun tool to play around with. If you're still looking for more personalized advice, we'd love to see pictures to get a better sense of the space and what furniture you have. Get those uploaded here, and we'll have one of our decor gurus help you out.
Best of luck with your project!