Debonair gives advice on painting a small room to give the illusion of a larger space.
A grey palette is a popular choice with professional designers working with small spaces. The color grey is not only perpetually chic and sophisticated, but it subconsciously insinuates depth in a room. Your best bet is to paint all your walls in a light to medium grey and a focal wall (usually the wall at the very end of a room) in a shade of darker grey.