House Progress Downstairs Bedroom Part #2

My dream is finally coming true! Isn't it looking pretty great? Look at the "before" picture below.

Now you can see how I've spent my winter. I've been painstakingly scrapping off the later blue and yellow paints over this wonderful original buttermilk paint. I love the color of the wall of sheathing, kind of mustard, kind of pumpkin. It's just warm and welcoming on these cold winter days. And I admire the color combination of the gray trim with the pumpkin wall, very subtle, and easy to live with.

And here is a corner with the trim, also stripped. And again, just some gray paint remaining. Look at the bottom of the corner post. Can you see how the previous owner cut away the bottom of the corner post to put in their baseboard heater. What some people won't do! We'll have a jolly old time repairing that, and making it look okay with the rest of the old trim. Thank goodness back in the day the original builders used huge material. Can you think what would happen if you cut a hole 4" deep out of the corner of a new house? It would surely fall down.

Here you can see my next problem. At some time in the past they put a skim coat of plaster over the original plaster, with some texture stuff in it, and over time its gotten all cracked and nasty. The gray area you seen is the original horsehair plaster.

Here you can see the results of a week's worth of work! Not much to show. I have been painfully scrapping off the plaster in itty bitty 1/4" pieces.  I don't think I'll live long enough to get the ceiling clean. And then what? The original plaster is tight to the ceiling, not loose or broken anywhere. But it has a network of cracks. If I spackle them I'll have a network of white spackle, ugly. Should I give up and sheet rock over it? What to do?

Dear readers, I have a decorating question for you. Please, please look at the picture above and help me out. We have pine floors, mustardy wall on one wall, and gray and pine trim. What should I do with the 3 plaster walls. I have a blue cupboard that goes in here, and a blue 4 poster bed, and some 18th C crewel panels that have mustard with blue and red embroidery. I don't think I want to stay with the dark blue buttermilk paint. Too many colors, and its in too bad of shape. under the blue paint you can see where it was once the same mustardy color. Oyster white walls? Repeat the mustard color in a dry butermilk paint on the walls? Help? Please leave comments, I really would like some feed back.