Yellow often looks like a very traditional color, but with the right styling you can use it in a more updated room. Check out some pictures:
I love the contrast of the yellow walls and white furniture/appliances, as well as the wicker baskets for storage.
This retro bathroom is a total throwback, but it looks great -- the yellow tiles could seem outdated, but with the cool touches like the striped wallpaper at the top of the wall, it doesn't.
For a contemporary look, try pairing a yellow wall with a chocolate brown one. The colors contrast beautifully.
Yellow also looks great with blue, and I love the contrast in this photo. See how contemporary the color can look with a funky light fixture and mirror?
Pictures via Flikr