I had this photo from Easter morning. It wasn't by any means perfect. The lighting was poor, you can see the ugly yellow of the walls of my kitchen, and my son's face is too shadowed. But I love it because it really conveys a lot of the personality of my children. So I scrapped it.
Don't worry that a photo isn't perfect - right colors, good lighting, etc. etc.... If you love the photo, include it.
For this layout, I did a simple composition. Lots of white space, a little bit of color and pattern. And a tag from Basic Grey - perfect.
The light grey paper under the photo is from Bazzill. It's really thin, great for layering and collages. You can find it in the back of the store with the cardstock - there's three fabulous patterns.