smelling I would do the gray rug as it will be more in style for a longer period of time.

Whitney I think a grey purple would be a great combo. Almost steal like with a hint of purple

Darzy Lilac/gray? Sooo pretty...I like the second one even better. Go for the color!

Dezign Studio Inc A rug with grey background and pastel design. You can bring in splashes of colors with bright pillows, artwork. Also the mirror above the cabinet /buffet looks smaller in proportion .

Artistico Always go for neutral on big ticket items. Add color with accessory's and paint.

aniluap2 Although I love Darzy's rugs, I think artistico is right. When you decide you don't want purple anymore a grey rug will go with most ant color. Purple pillows are easier to toss than a rug. By the way, love your choices so far

Darzy I agree big ticket items should be neutral. I do love a statement rug when everything else is soooo neutral. Here is a beauty 5'8' rug for only $279!

Schlosser Design Group Feizy has a new collection that would look great in your space.

Dawn Taillon We got this perfect rug that is real light grays with a little lavender in it from Home decorators,http://www.homedecorators.com/P/Addison_Area_Rug/300/. WE Love it. I love the Ecconox Oberon a lot too.

ASVInteriors This style was very much in trend in the UK last year - old rose, faded lilac with cream, silver and grey. It went beautifully. If you have a great colour combination that works, it can remain so after the trend has come and gone. There are others trends that should go of course!! But this is a calm, serene, elegant look that gives light and breaks the mould from the more conventional colour schemes.
I should add that purples/lilacs tend to become warm browns at night depending on your lighting. So whatever you do, make sure you see your carpet at night and in the daytime to see how it changes.

bathhousewirral I would like to see combination of yellow and red on the wall. I have used it many places. It shows some elegant look.

DIAspoton either will work and if the color and pattern are soft they'll be easier to live with longer. the feizy line as schlosser suggested, has several good choices online : escalante , vivendi , amalfi and ouray
home decorators has a lilac : tilli

the dresser scarf needs to go and the 2 mirrors are too small.the mirrored dresser is very attractive. black and white photography would look great above it
change the flowers to something long,low. a simple tree branch would be a nice free form organic touch.

michblue Thanks everyone for your suggestions and candid comments. Here are 2 different angles of the room with a view of the other furniture. Would this change your thoughts on purple vs grey or patterned vs solid? Thanks!!!!!!!!

michblue ....I am not so worried about the lasting power of the colour....I don't mind changing it out in 5 yrs if I get bored.

ASVInteriors I am definitely for the purple. It will add contrast to your floors ....(and a nice contrast I might add!)

decoenthusiaste Here are three that I like from homedecorators.com. Found them under Purple Rugs as I was shopping by color.

aniluap2 If you're not worried about switching it up in a few years Definitely purple. Loved Darzy's rugs.

aniluap2 Also decoenthusiaste rugs would add subtle color.

PYRAMID DESIGN GROUP purple / lilac patterned rug and introduce sofa pillows the same color. For added warmth I would paint the wall the "rug color" and paint the mirror frame 2 shades darker (than the wall).

decormoz Purple/Lilac! Keep the room the same.

kris10c Where did you get the chairs, please?

patriciarhall i like the yellow/green color in the pattern in your chairs and the pillow on your sofa. consider using this color in your accessories and rug

kris10c And I think Gray, and add some more pops of purple with accessories!

Darzy I'm glad purple/lilac is getting some votes! It will be beautiful and "unexpected". I really like Deco's rug suggestions!

michblue Thanks for all of your suggestions. Lots of great ideas. The chairs and fabric are from Fairfield.

michblue ...hopefully I can find a site like homedecorators.com that ships in/to Canada!

Dawn Taillon They don't? I also loved and considered the above lavender rugs but hubby vetoed them as froo froo, Martha Sterwart rugs. UHG! So oddly he loves the Addison one, that lavender accent was a huge confession for the man who wanted a manly cabin.

bevballew Very pretty room. I say add the purple. You need some color and those purple rugs are stunning. Your room will be so elegant with the purple, something different.

patriciarhall michblue, do you have other things in your house with lime green, yellow/green to try in the room? Here's a rug I think would go well with your chairs.
http://www.homedecorators.com/P/Argonne_Rug/630/

Dawn Taillon I like the prices at HD, I like the rug but I am not feeling the green direction so much. I think it would be a good accent color for sure though. The space is so nice, how can you go wrong?