justgottabme: Yes! excellent plan! The Tv needs to be in that corner next to the fireplace -- either mounted on the wall or sitting on a console or cabinet. Having a cabinet in that spot would anchor that whole corner. And more excellent ideas above too! Love the idea of bookshelves in each of the corners -- perhaps just try basic Ikea Billy shelving -- or other build-it-yourself shelves (try stores like Targer or Walmart)-- just to see if that plan will work for you? Or look for vintage shelving or bookcases on your local Craigs List! Swivel chairs can be found -- check your local Craigs List! But for now -- once you move the TV -- try placing one sofa facing the fireplace -- and another one facing the window -- forming the classic L-shape.

Thanks to all who have posted their suggestions so far! How far up on the wall should I go if using tile or stone? The fireplace is up to current building codes for my area (Southwest Los Angeles County), but that doesn't say much since all that is required is for the fireplace to be properly vented to the outside - mine is vented to the roof like a regular fireplace with a chimney would be - and two feet from the walls, with or without the connector to a gas line ignition (mine has the thing on the wall but is not connected.) @pesky1 - I do have a lot of empty *blah* space on my walls, some of which is due to the vaulted ceiling height and being only 5'1" (If I had the storage space for it, I'd have a ladder taller than 4.5ft, but there's barely enough space for the one I have...) but the kind of tv I have can't be wall-mounted, so I'd have to save up the funds for a taller entertainment center. Still, it's worth considering. I've spent the decade I've been living in my place getting the funds together to purchase furniture and so forth, but now that all that's done with, I'm just now getting to the point of realizing I forgot all about doing something with the walls. I sort of ignored them after having them stripped of the awful brownish plum color selected by the former resident (who didn't bother getting the permission of the landlord whom I bought my place from...) and painted white just prior to moving in. It took me a while to implement the solution to the majority of the wiring being on one wall (literally, one living room wall had like 5 electrical outlets plus the cable wiring, and the other wall had just 2 electrical outlets and the wall switch for the patio light outside!) - I'm still working on saving up the money to have the bannister for the stairs stripped back to the natural wood that can be refinished, something I hadn't even thought about being an issue later; I just wanted to get rid of that ugly brownish plum color. Who knew that years later, all the dings and chips in the paint that happen over time would make the bannister look so awful. :P Painting is an option, but if I only go to a certain point on the wall, what to cap it with so it doesn't look like I just got lazy and stopped painting in the middle of the process?

May I ask just what is a "servery" and what does one do in a "conservatory"? You must not be in the US. It looks to me that the current family room has easier access to the kitchen than does the current dining room. That would be a plus for doing what you want to do. As of the floor plan, it looks entirely doable and it makes sense to reverse the use of the two rooms. It looks to be awkward to carry food service all the way around and down the hall to the current dining area. If you have servants, that might make sense. Since most of don't have any such, it makes sense to have the dining area adjacent to the kitchen. Most people don't even use the more formal dining areas of their homes, except at holidays. The modern sensibility is that most little used areas of that nature just amount to wasted space. So, if you spend more time gathered with friends than gathered around a more formal dining area, make that change.

What are you willing/able to do? What, specifically, are you unhappy with? Are you considering replacing the furniture? Paint the walls? Without more information it's difficult for me to make suggestions. However, I'd strongly suggest moving that chair away from the draperies/window. And also change the paint color. Is the room as small as it looks in these pictures? If so, that furniture, in my opinion, is far too large. When you say "Beautify my living room again" (again being the word I'm referring to), what did it look like before when you considered it beautiful? I think you've got a lot to work with. It would also probably be a good idea for you to post this also in the Home Decorating Forum.