I would move the tv to the wall where the couch is now. Move the couch opposite, with its back to the sliding door. Consider adding a sofa table behind with a pair of lamps to bring more warm lighting into the room. Keep the small chair where it is on the right side of the fireplace, and use the floor lamp next to it. Put the chair and a half and ottoman to the right of the couch, the end table and lamp beside it. Move the whole arrangement a bit closer to the fireplace, and make sure that the front legs of the couch and the chairs are on the rug. I agree that the coffeetable is not the best choice. I would love to see something round, perhaps a wood or slate top, with iron legs so that you don't have so much heavy furniture in the space. Down on the end wall where the tv is now, I would think about a game table and chairs in the corner where the screen is, great for snacking or playing games or doing puzzles. I would find a new home for the screen. Then a group of bookshelves with some closed storage in the same finish as the tv cabinet to the right along the wall to allow for storage of some of the toys, as well as a place to house books and media. Take the clock off the fireplace and use that on the end wall where the game table will be. Use the canvas you have on the fireplace, to bring some of the warmer colors of the room onto the grey fireplace. If your DH doesn't want to paint the fireplace, check into staining it. Just giving it a warmer finish would do a lot for the room.

Center the rug with the fireplace. Take the bookcase out of the left corner of the room and put that in the space between the kitchen and FR, where the console table now sits. Move the sectional down toward the fireplace, (after centering the rug), add an end table to the outside of the chaise part of the sectional. Someone sitting there wonâÂÂt want to move to get a drink off the coffee table. Be sure there is a lamp there as well, to light that corner of the room. Move the armoire to angle in the corner where the sectional was sitting originally. Use it for storage, perhaps add shelving or even a pull-out shelf for a computer center which can be closed up and put away. The piece is very nice, and gives good height to balance the fireplace and high ceilings. For now, try the console on the wall to the right of the fireplace, and place the new flatscreen on that. Later you may prefer a more substanial cabinet, which can hide other components and store DVDs, etc. If you do that, then try the console table behind the part of the sectional that has its back to the kitchen. Add a comfy upholstered chair in the corner, a bit closer to the fireplace, where the armoire was, along with another small side table and lamp.

I'm going against the majority here - given that you won't be looking at the fireplace year round (only a major focus in the colder mnths), I'd focus on putting the tv where it makes the most sense (where the most # of people can see it comfortably) since it will get the most use. If hubby is handy, any thought on putting the fireplace up high-ishy on the wall? Kinda modern? Would allow for another chair to be placed in the room perhaps (I'm keen on lots of seating) Did you say anything about venting the fireplace? Will that make a difference in the placement? I'd love to shove a fireplace into my tiny livingroom, but think that it would need to be on wheels (to be removed in the summer) - hahahaha!

Well, if you watch a lot of tv, then I'd make a main furniture grouping around the tv/fireplace and just put a couple of comfy chairs with a small table between, either to each side with a table in front of the fireplace, or facing each other in front of the fireplace with a table between. Just a little reading or wine sipping area. like this: If you mostly gather without tv watching then I'd do the opposite and put a couple of chairs on the tv side. You could think about using a backless chaise/bench as a piece of furniture between the areas, so people could face either way or lie down to watch tv. Like this: If you don't use the electric fireplace, I'd still think about mounting the tv lower, in front of the firebox and putting some nice art above the mantel, for more comfortable tv viewing. It's a challenging but beautiful space!