Contemporary update: Out-of-date basement gets modern makeover

Della and her family live in a sprawling 1960's split level home. They are a close-knit family who love to "play together," and their large basement is where they convene to hold their hockey tournaments, TV marathons and karaoke competitions.

However, the room was not all fun and games as far as Della was concerned. While it was tolerable for family play, the space -- with its dated wood paneling and dingy green carpet -- was an embarrassment when it came to entertaining her large circle of friends.

So I geared up to take this wreck of a rec room, whisk it into the current century and make it party and playroom perfect.

While the idea of renovating a big basement can be daunting, it is possible to modernize the room without completely gutting everything. While a little bit of ripping up and pulling out would be necessary, I decided this spruce-up would really focus on updating the room's finishes.

I started by priming the room's dark wood paneling and covering it in bright, cream-colored paint. The basement also had two little nooks that I painted a sizzling shade of rust. I then ripped out the room's old carpeting and tiles and put down a dark wood-look vinyl floor that adds warmth and richness to the space.

There was little lighting to speak of, so I modernized things by installing recessed lighting throughout the space. I then strategically placed a couple of lamps and a few gorgeous Murano glass fixtures in the room for an added touch.

Once the basics were in place, I got to work on creating living zones. The room had to function on several levels for friends and family, so I organized four distinct areas in the room: a media center, an office, a bar/games area and a lounge spot.

For the media center I ripped into the wall a little to create a recessed area for new cabinetry into which I put a big screen TV, speakers and other media equipment for movie and popcorn nights.

In the room's little office area I installed new furniture and then screened it off via a curtain so it is out of sight when not in use.

Next I got to work on the bar/games area, which I enlarged by stealing a bit of space from the adjacent laundry room. I created storage for the games, put the air hockey table front and center and then set up a new, dark wood bar for entertaining guests.

In the lounging/seating area, I updated the room's existing stone fireplace with a sleek and contemporary dark wood mantle and a retro starburst mirror. Around the fireplace, I added plenty of cozy furniture, including a gigantic sectional, four large armchairs and a variety of small tables.

The new furniture and finishes definitely breathed new life into this space, but the real drama came from the fabrics and accents. I got inspiration from the room's stone fireplace -- mostly grays, taupes and rusts -- and used these colors around the rest of the room: charcoal drapes; warm brown upholstery; and a variety of solid and patterned accents in pumpkins, taupes and grays.

This basement was finally ready to party. By adding some fabulous finishes, luxurious lighting and comfortable furniture, the room went from dated to dreamy and is now ready for family, friends ... and some fierce karaoke competitions. How divine!

Interior decorator Candice Olson is host of Home & Garden Television's "Divine Design."