The Historic District

I consider myself to severly challenged in the decorator's "eye" department - but I have to say I think either of your thoughts are great solutions to the area where your dado steps down (or up, depending on your perception )
If I were forced to vote for one I would probably go with the corner guard but I am a minimalist and I picture bonking in to the pilaser... Just my $0.02

Thank you Annie. I did post this among some other old house people and got some ideas and a few even did a mock up (photoshop) for me... the pilaster the entire height of my wall is going up and once I put in the crown molding and the chair rail everything should flow. Now I have to finish the wallpaper, painting and the shellac to make that cheap wallpaper look more like Lincrusta. Thanks to both places I posted I got fantastic ideas and generous help