That looks like a lovely space--plenty of light, large room, fireplace, nice wood floors. Some questions first. What are the primary functions of the room? TV watching, sitting and chatting, eating, listening to music, reading, entertaining guests, watching the fire? Make a list of all the things you want to do in this room. Then consider whether you can do them in the room as it currently is, or if you need to add/replace any pieces. For example, if you'd like to use this room as a cozy reading spot, is there a comfortable chair with a good lamp and table nearby, or is reading frustrating because the only place to sit with good light isn't comfortable for reading for long periods of time and there's no place to put down the book or a cup of tea? Second, traffic patterns. Most of the furniture looks pushed up against the window wall. Is that to leave a clear path to the doorway at the upper left? There are ways to arrange furniture to avoid the "bowling alley" effect. Could you post a drawing of the surrounding rooms so we can see the traffic flow? And is there a space outside the window that you access from this room? Third, what's that box hanging from the ceiling? Is that a projector? Where's the screen? As for style, cozy doesn't have to be cottagey. With the furniture you have now, I'd consider getting a large area rug or two. They would help define the space, and add some warmth, even if they are a modern design. A throw in a vibrant color. Dress the window in plain white sheers, maybe on a cable system from Ikea. But I really feel that rearranging the furniture will create a better feeling of coziness. I'd create two separate areas in the room. One up by the fireplace, with maybe a loveseat facing the fireplace, with an end table or two and a lamp. Or two chairs with a round table between them. Anchor that grouping with an area rug. Then a second, larger grouping in front of the windows, centered on the TV, using the sectional. I'd consider a different coffee table, or painting the one you have. Again, with a large area rug to anchor the seating area. As for colors, orange always seems like a modern color to me. So I'd consider swapping out the orange in the room for another color that would go with the brown. And ideally, I'd replace the huge speakers with smaller, wall-hung units, but that would be expensive. This post was edited by camlan on Sun, Jan 13, 13 at 10:36

Bottom of chandelier should hang no lower than 7‘6” from floor.

Right now there is no room for a coffee table or to have a conversation. The solution with a narrow room like this is to align the deeper furniture with the deeper part of the room. Put the TV on the wall over a shallow console, on the wall opposite the fireplace. Then put the couch in front of the fireplace, facing the TV. You'll still have a "hallway" in the same place, but now you have room for an arm chair in front of the windows, maybe an end table in the corner between arm chair and couch, maybe even a second (slipper?) chair on the near end, but who can say since we can't see the other direction. I suspect you could fit a coffee table in front of the couch as well. Fireplaces can be nice design elements, but here it is enslaving you to bad options. If you ignore it, you can arrange the furniture to actually enlarge the space and welcome friends to join you there.

Get the TV away from in front of the window to start so put the TV whaere the loveseat is and then get rid of the loveseat add 2 choirs and a nice console that does not collect junk and I would do a wall of TV and Besta from Ikea with a place for the TV some storge and a bit of display. CDR has a good idea. Get some art for the wall and hang it much lower , add some color form the art for a coupleof pillows on the sofa and some much better lighting.