I have a formal living room that is painted soft yellow with white wainscoting, crown moulding, mantel, and trim. I use red accents in there, too. We have all our family gatherings, holidays, celebrations, etc. in there.
My family room is paneled in original pecan paneling with built in shelves on either side of a brick fireplace. I have plaid furniture (navy, hunter, and burgundy) with a cherry entertainment unit...not Queen Ann's type cherry with a shiny finish, but a more natural cherry. That is our daily gathering place and where we spend most of our time as a family. The kitchen has a double wide opening that goes into the family room, so I can see everything going on from either room into the other room. Very handy with the kids.