I asked my husband drag it into the basement; sanded the shiny varnish off; sealed the wood with primer; spray painted it black (note: regardless of how clever your ventilation plan is, do not spray paint in your basement! yuck!); added a little cushion to the seat with some batting; and covered the seat with some fancy, yet very inexpensive fabric I bought on fabric.com.
I'm pretty pleased with myself here. I love this little telephone seat, but I definitely plan to move my spray painting activities outside!! Check out the pics and let me know what you think.