How Candice Olson honored tradition with a modern moxie

THE PROBLEM Owners wanted to turn cramped quarters into entertaining-worthy digs.

THE SOLUTION Knock out walls to turn living and dining rooms into open-concept space.

HOW IT HAPPENED • Opened up outside wall to reclaim porch as interior space, added windows. • Used older-looking finishes -- coffered ceilings, crown moldings and a walnut floor with a hand-chiseled finish -- to retain character. • Installed a leaded-glass window, which was a gift from neighbors to entice the owners to stay.

• Updated unused fireplace with an insert, mantel and marble-tiled surround.

• Flanked fireplace with display cabinets; installed armoire across from it for hanging (and hiding) coats.

• Separated living and dining spaces with channel-back sofa in gray velvet.

• Added daybed in gray starburst pattern (repeated on dining chairs) and soft sectional to create conversation grouping.

• Created wall of open cabinetry to showcase owners' china and crystal.

BEST TRICK Hid television in remote-control artwork above the fireplace, so it is out of sight when not in use.

Distributed by Scripps Howard News Service. Interior decorator Candice Olson hosts "Divine Design," which appears at 8 p.m. Thursdays and 9:30 p.m. Saturdays.