My friend, Melodee, is starting a preschool this fall. Here are some budget conscious ideas for a bedroom turned preschool.
Her original wall colors are close to this
color (if I remember correctly):

She was thinking about a sagey
green:

and a
blue:

I think this
blue would be a nice accent:

My two favorite ideas are stick with the neutral wall color and add
beadboard:
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accessorizing with posters, children's art work, etc.
OR have fun with stripes (found here (uh oh, I lost the link when I restarted my computer but I found it via google images,
here,
here):



Either way, I think these
curtains are fabulous and cheery (and affordable!):

And this
fabric would be fun as a tablecloth or pillows in the reading area:

Rug options (
here,
here, and
here):



My next task is to figure out how to make a decent looking idea board on my computer without buying any additional programs, etc. :)