I'm using beadboard wallpaper below the chair rail to simulate actual wainscoting. (A product that has a bit of a learning curve, but is fairly forgiving when it comes to fixing seams.) I'll then paint it in the same semi-gloss white that I've used for the trim throughout the house. Above the chair rail I'm planning on a deep navy like some of these inspiration images:
dining room inspiration from HGTV
dining room inspiration from 58 Water Street
The dining room still has a ways to go before I'll call it "finished" -- I still need to find the perfect chairs and buffet, and after the painting is done I have plans for a wall of black and white family photos that I still need to collect from the parents. But it's great to finally be making some progress in here, slow though it may be!