Last summer a friend and I were at a flea market in Charlotte, Vermont. She found an old musical jewelry box that played "Lara's Theme" from 'Doctor Zhivago' - but couldn't quiet bring herself to buy it because while she loved the music it played, it was an ugly old plainish wood box with mustard yellow lining and she thought she'd never actually use it.
So about a week later I went back to the flea market and bought the ugly music box. I took it home, sanded it down, and painted it her favorite color and decorated it with her name, flowers, and other details that coordinated with the lining color. I coated the paint in two layers of protective varnish so it would stand up to daily use. Et voila!
It worked really well. She loves it and has been using it for over a year now with no paint chips or scratches or anything. I've done this many times since then. You can find homely jewelry boxes at most GWs and SAs for not more than $5-10, and with a little love and attention they can be priceless personalized gifts. Just make sure not to accidentally paint hinges, drawers, or lids shut! Another nice touch is to replace ugly drawer pulls or other fittings with pretty beads affixed with flat-top decorative screws.