Abbie - blogger and wonder-woman from The Green Wife - wants to do her formal dining room with damask wallpaper! I say "YES YES YES" all the way. Here are my thoughts: Go big with the paper print and color. Make it something you absolutely love and then keep the furnishings simple and elegant. Also remember that just because you have a Baroque style wallpaper doesn't mean you have to stick to a certain type of furnishing. Mix it up. Damask prints are for every era and style: Victorian, Modern, Shabby Chic, Rustic, Southern, Coastal, you name it.
If you're not ready to go balls to the walls Damask,
try it out with upholstery or table coverings.
And just for fun, because I think the yellow and brown combo are sorely ignored:
The following papers are from my favorite online wallpaper source, Wallpaper From the 70's. There are so many to choose from and they ship very quickly. Enjoy browsing, Abbie!