Here are some pics of the actual room. Consider everything in the room moveable:

I'd face reality and make the TV the focal point, since that's what you say is the main use of the room.

I'd put a couple of easy chairs flanking the fireplace, just to accommodate anyone who wants to look at the fire, rather than the TV, place the TV on the wall opposite the fireplace, the couch in the middle, facing the TV, a game table and lightweight chairs on the wall opposite the sliding doors, and as much shelving and storage as you need flanking the TV and game table.

Thanks suero. You obviously hint at one of the issues of placeing the tv there (i.e., having our backs to the fireplace). The other thing that is a bit of a concern for us is the fact that one of the immediate things people would see when opening the front door is the TV because the door on the left leads to the foyer which leads to the front door. Not a killer but not preferred either.

Just as suero said, make the TV the focal place by putting it on the large wall opposite the fireplace. Split the room into multiple zones with a comfortable couch across the middle facing the TV in whatever is the most comfortable position. Flank the fireplace with a chair or two in case someone wants a cozy reading or conversation spot. I would also consider having a chair (and maybe an ottoman) on the window wall facing the TV so you have another seat for TV watching.

Would you consider flipping your living room and this room? I am thinking that perhaps your LR doesn't have all the sliding door and fireplace issues, and that you spend much more time watching tv than sitting in the LR and talking. So why not use the house the way YOU live most?

This room would seem to be a lovely space for talking and entertaining, what with the access to the back, the fireplace, and the lovely ceiling.

Les, as always, has the best ideas.
If you don't want to swap rooms then I'd put the TV over the fire place and maybe even set the entertainment center on the hearth if you don't use the fireplace other than a place to put your pets cages.
You have a beautiful home. I have the same pagoda in our sunroom.

Thank you Les and justgotabme. It seems that we have covered just about all the options on this thread.

I think that my wife and I pretty much just have to move things around to see how things look. But, placing the TV in the living probably wouldn't work as their isn't a good place to put it their either. But please, feel free to look at my living room below to share your thoughts

Truth be told, in terms of furniture arrangement, placing the TV over the fireplace (and perhaps redoing the FP at the same time) is probably our best option. We have seen a few other people in the area do the same in this room.

Of course, it is also the most expensive option and one that we can't really go back on if we wanted to. And there is still the matter of me not wanting to place the TV too high for viewing purposes.

I have the same Matisse print. Just got it delivered--haven't framed it yet.

I hate that my living room is somewhat rectangular in shape like yours. I will keep looking to see what people suggest. I do think your room is very interesting. The ceiling is very cool.

Thank you jockewing. If you are referring to the one with the candle, it is actually a Picasso (Enamel Saucepan). My wife and I actually painted that one (on canvas) as well as the Apple painting on the opposite wall.

Ah, you must me talking about the Tree Print in the family room. That is indeed a Matisse.

The Matisse print would look great on a shelf, against the brick of the fireplace.

If you don't burn the fireplace, I also would suggest placing the TV on the wall opposite your fireplace, with the sofa facing away from fireplace. It also makes the room more square, which sometimes is more comfortable.

Since someone proposed room-swapping, the other possible switch would be dining room for family room. The dining table in front of glass wall and near the fireplace could be very nice. And you could leave the sideboard. OTOH, the TV would need to go on your shared dining/kitchen wall, and I don't know if it's long enough. And you might not like the repeated idea of sofa or chaise in front of your front windows. But it's a thought...

Since you are not using the fireplace, how about putting your TV console on top of the hearth...The brick would be a pretty back drop for your TV. Your console should be the same width as your fireplace.

Your fireplace appears to sit lower than most. It almost looks like you could place the TV above it and it wouldn't be much higher than it is right now on the console.

I agree that handing TV above the fireplace would probably be a fine height. But because the TV is nearly as wide as the fireplace, I think it would look odd -- the TV would not have a sufficient 'frame' around it. You could cut paper to size, and tape it up to test.

The fireplace is 6 ft wide I believe. The TV is probably around 4ft wide so I think the framing wouldn't be an issue.

The kennels are there temporarily but to answer one question, we don't use the fireplace a whole lot. Probably only used it twice since we moved in.

Hey, we live in Southern CA so we really don't require get cold winters.

Since you live in Southern Cali my idea of the ET on the hearth makes even more sense. That way you don't harm the character of your home. It would make a great feature wall. Maybe even paint it a darker color too. Just a thought...

I like the TV/console on the fireplace hearth. Good picture.

I certainly think switching the two spaces could work for you. I could see the tv in the living room, placed on the short wall where the two x benches are now. No glare problems, and no one having to look sideways at the tv. The couch can go where the current couch is, The leather chair to the right of the couch, kind of where the one print chair is, with the floor lamp from the family room between it and the couch; the couch moved down just a bit and the chair angled there a bit.

I would keep the leather trunk with the family room furniture as a coffee table. I think the chaise in front of the window could stay, for more seating in the family space.

I love the console in what I assume is the entry. Think about hanging the art, to get some height in the area. If you are going to do matching urns, you might want to treat them the same and have flowers in both, or plants, or at least two complimentary arrangements. One with flowers and one empty works against the symmetry that having two identical urns seems like it is intended to create. Or keep one urn, and replace one with a lamp and find a new home for the other urn.

Then the living room couch could be placed opposite the fireplace in the FR, leaving space behind it and the wonderful cabinet on the back wall. The two print chairs could go on the wall where the tv is now, with a table and lamp between them. I think the color of the fireplace would be nice with the print in the chairs. Be sure to turn the rug so the long side is parallel to the couch. Try the tower shelf in the corner to the left of the fireplace.

I would add a pair of tall lamps to the cabinet at the end of the room for more light and a nice feel in the space.

If you decide to keep the tv in the current room and use it on the fireplace, you will still need to reposition the couch opposite it and move the leather chair, so that you meet your criterion of no one looking sideways at the tv.

Les wrote: "If you decide to keep the tv in the current room and use it on the fireplace, you will still need to reposition the couch opposite it and move the leather chair, so that you meet your criterion of no one looking sideways at the tv."
This is what I intended as furniture the arrangement with the TV placement in my drawing above, but just didn't take time to do so in the virtual.

I could see the tv in the living room, placed on the short wall where the two x benches are now. No glare problems, and no one having to look sideways at the tv. The couch can go where the current couch is

Wouldn't the view still be sideways if the couch stayed in the current position no matter which one was used? If the TV were placed where the X benches are now wouldn't a couch have to moved so it's back was to the dining room?