Leaving frown town.

So lately I have been pretty down about things, its been a few crazy months, but the hubby and I decided its time to just forget the past (well, not totally.) Which is why he and I vowed to be positively positive, not only for our marriage to be healthy, but for our beautiful daughter also.

So moving in that direction, I have decided that our house needs a more of a creative touch to it. We moved in about 7 months ago and I am slowly adding my personality to it, but its moving at turtle speed and I can be a little impatient. The two huge revamps that I cannot wait to start on are the kitchen and the living room.
The kitchen, has not been touched since our move in. We painted every room in our house except the kitchen, mainly because we were just doing what we needed to at the time to make it livable and the kitchen wasn't too hideous. The kitchen is a dark green with and ugly olive tree border along the ceiling. Oh, and did i mention this kitchen is completely retro...the stove top is on the counter, but the oven is built into the wall up off the floor. Honestly, its not bad. I actually like it that way. But I am more concerned about the color. I have a vision for this kitchen all being designed around this:

I love bright colors and Mexican art. My hubby is Mexican and I want to incorporate some of that beauty into our kitchen. So i was thinking of yellow walls and colorful curtains. Plus, I need to reupholster our very retro kitchen chairs. I am a bit nervous in doing so because I have never done something like that, but there is always a first for everything. The kitchen will look beautiful after I am through and I can't wait to get started. I just need to get the hubby on board.
Moving on to this living room. Let me first say that I am all about hand-me-downs, but as long as they fit into my scheme of things or as long as I can make them fit. Most everything we own in our house are hand-me-downs (besides, Evangelina's bedroom.) So I am not complaining about having hand-me-downs. I am just wondering how I can make this particular hand-me-down couch fit into my idea. Now, this said couch is in my eyes...hideous! But it is very comfortable and sturdy.

Lovely, right? Yes, Evangelina loves to nap on this couch. Country plaid is definitely not my thing. I have a horrible time decorating around it. No slip cover fits this country beast. So does anyone have an ideas on how to make this couch over? What about the couches cousins, hunter green and granny pink lazy boys? I need designs on a dime and simple because I am penniless and a novice at sewing.

Please feel free to shed some light on what to do.