I think I'd get a decorative wallpaper and put it up over the paneling to the edge of the doorway. The only reason I'm saying paper over rather than take down is at least your could change your mind and strip the paper off at some later date (but carefully) Above the doorway (and anywhere else for that matter) I'd get rid of the paneling on the wall. That way you will end up with a feature wall and not just a wall covered in wood. I'd then expose the wooden floor with, maybe, a large rug in the middle so the floorboards are only really exposed at the edges. All of that is based, of course, on the room as we can see it in the picture :-D
