We sanded down all the rough spots and filled in the gaps with Wood Filler. Then we covered it with two coats of white paint and chose "Gravel" (from Restoration Hardware) to be our top coat. We also decided to paint the inside of the drawers and chose "Flint" (another R.H. color).
After letting it dry, we sanded the top coat down until the white paint began to show through - hoping for that "antiqued" look. Then for the final touch we added some cute paper lining on the inside of the drawers.
And here is how it turned out ....
For the drawer lining I found this cute paper at Papyrus (it's actually wrapping paper). I traced the opening of the drawer, and then, using an x-acto knife I cut a little extra off each side of the paper. Then I used spray adhesive to hold the paper down. I'm not sure if this is the proper way to do things, but I just wanted to let you know what I did, and the drawers still look great.