An off-white, like Navajo white, will reflect any light that creeps in through the small windows. The off-white can be a warm tone or a cool tone. Warm tones and wood are fine companions, and cooler whites suit metallic finishes.
A pure, bright white suits a work area. You aren't worried about aesthetics too much as you iron or do some soldering. And the bright white will reflect maximum light, so you can see those fine details. Bright white coupled with fluorescent tube lights can be a little harsh, so consider tempering it with halogen or incandescent light.
A deep red adds some powerful personality to a room. For a utility area, it's a bit much. For a party room, den or bar-like feel, though, red is super. It accompanies wood perfectly and is a fine match for a fireplace. Try some swatches on a few square feet of wall before committing to a paint purchase. You may find the darkest reds are too oppressive. Another option is a single red wall. This will add punch without overpowering the space.
Pastel colors, with their white base, are naturally light. They will breathe color into the room without the strong darkening impact of a color at full saturation. Pink, pastel daffodil or an earthy pastel like light mocha are moderate possibilities. A white ceiling, along with a pastel, will heighten the lightening effect.