This room has evolved over the past 3+ years. Here's what it looked like when we bought the house.
Before moving in, we had the floors refinished, crown moulding and fireplace surround installed and the walls/trim painted. The room has so many windows, doors and entrance-ways, that it makes it difficult to fully utilize the space. So, I've played with the furniture layout countless times. But, I think the current layout might stick (the big pieces, anyway). Here's what it looks like today.
We love this room - and even though it's more of a formal living room - we actually spend a lot of time in here. In reality, there are usually blocks, puzzles, princess paraphernalia, etc. all over the floor, strollers parked in the entrance; and the ottoman spends most of its time pushed up against the fireplace. But, I was able to steal a few minutes over the weekend to tidy up and take some pics.
Sources: sofa, chairs and ottoman from Ethan Allen; jute rug from naturalarearugs.com; roman shades from Pottery Barn; globe and lamps were wedding gifts; burlap lampshades from Target; round side table belonged to my grandparents; rectangular side table and secretary are craigslist finds (the side table was $5!); painting by David Oleski was an amazing 5th anniversary surprise gift from my husband; rooster pitcher from Pierre Deux; suzani pillow is from Istanbul; zigzag and ikat pillows sewn by yours truly.