I have this awesome little picture of a friend of a friend's dog--it's a dachshund named Francis, politely wearing a fez.

(And while I usually hate dressing-up-animals photos, Francis just seems to have style.)
While there are many things to like about the subject, the quality is pretty bad. I know that when you have a picture to fix the first thing you have to do is identify the problem areas, but half the time I can't tell specifically what they are. So I decided to practice on my little Francis picture, and see if people here would mind helping me identify the problem areas and/or see if the problem areas I
have identified were accurate.
On the right of my uploaded image you'll see the changes I've made thus far: the picture was grainy and noisy, so I applied Despeckle. Adjusting the levels made this weird halo of color around Francis stand out even more, so I erased it as best I could with the Clone Stamp tool. I then tried to sharpen the image back up using a copied layer with High Pass applied, at a setting of 1 px, then set to Overlay.
And now...it's better, but it still doesn't really pop. The dog's face doesn't have a lot of contrast, but that may be unavoidable, due to its coloring. Speaking of coloring, the red floor seems to be working against the dog, too, and I realize my changes took that light flare on the floor and blew it out more. I really like the red floor, but...well, you see what I mean.
What are the problem areas you see, oh Gurus of Retouching, and what would you do to change them?