Help!

So, I found some great barkcloth drapes this weekend for a fantastic price and I thought I had the perfect room for them. My bedroom is well, ugly, or not to my taste should I say. The room was originally a nursery, the walls are painted blue and pink, the carpet is an awful blue and the border on the wall has been hastily pasted over a baby themed strip of wallpaper. I chose this room over the other bedroom in the apartment because it has a real nice window that lets in the morning sun, unfortunately decorating it seems to be a real challenge for me.

Now, with these new drapes in my possession, I am hoping that I can transform this room into something that is to my liking. I seem to be stuck though, I can't get past the country vibe this room has or the blue carpet that I am stuck with.

So, I am turning to you.

Here is the deal:

I cannot remove the carpet but I am not opposed to covering it just as long as this option remains relatively inexpensive. I'm not looking to spend a ton on this project, not right now anyway.

I like the idea of paint but fear the removal of the border on the wall will not go smoothly thus leaving the surface too rough for a simple paint job and I am looking to keep this project simple.

I like the idea of wallpaper but have no idea a pattern or color scheme that would work in this room. Also, the ceiling is very high in this room, over 8ft, so wallpapering would be a tedious task.

The drapes themselves have blue and pink in them, which match the existing wall and carpet colors. The drapes also have a nice green in them that might be fun to work with.

Because the drapes look nice with the existing pink on the wall, I have given some thought to wallpapering from the trim up to the top of the border, over the blue portion of the wall, but I am not sure how awkward this would look or what pattern is suitable for such a move.

Some other things I should mention:

I have a beautiful vintage chenille bedspread that is blue, so I'd like to keep some blue in the room.

The furniture in the room is all 50s style blond wood like the nightstand in the first photograph. The trim and cabinets in the room are pine which can be seen in the first photograph as well.

Any ideas?

Please, if you have any ideas throw them out there. I've got decorator's block just awful and I can't seem to see anything in this room besides the terrible blue flowered border. At this point, I'm open to anything.