When we moved into our house a year and a half ago I didn't have much time to decorate the playroom, and over time it became a mish-mash of color, stuff, and kid clutter. Recently I revamped it with some paint, fabric, new storage, and new play zones (pretend, reading, legos etc.). All of the details can be found on my blog, http://namesakedesign.blogspot.com/2011/05/this-summer-i-plan-to-tackle-four.html.
I found a great fabric at Ikea and used it as a "jumping off point" for the rest of the room.
When it comes to decorating kids rooms - I'd describe my style as thirfty, fun, and functional.
Oh, there is a lot of DIY in this room! My favorite thing is the play tent I made with a couple of sheets and a hula hoop. All the project details are on my blog,
Besides the pla tent I also really like the kid friendly daily schedule. It helps the au pair plan acitivities and keeps my 3 year old motivated.
Don't be afraid of color!