Could you have the three-seater be the piece that faces the TV? That way, the two-seater might block the window less. A wider rug where all the furniture legs were on the rug would help keep them from moving around.

You could paint the shutters and trim on that window the satin version of the wall color to deemphasize it's placement.

Hmmm your lead was about windows but then you say the shutters stay. If those shutters are how you prefer windows--totally covered no light coming in, I think I would have just removed the window. I agree with Grawyings, and the three seater is too close to the hearth, besides.

Least expensive option is to paint it the exact colors as the wall. Otherwise, remove it.

That's the wrong location for the floor lamp. Its light affects the quality of your flatscreen image.

Are your overhead lights on a dimmer because the room appears overlit?

Rug is too small for room and furnishings. I have illustrated a more appropriate size for a rug.

We just bought the shutters. Sunburst shutters, not cheap. Our entire first floor windows are the same white plantation shutters so we won't be painting them. That would completely ruin the shutters.

It's been a dark, gloomy, rainy day so I've had the shutters closed when I took the pictures. Normally they are open but no light would be coming in on a day like today anyway. We can't have a family room without a single window. I'm not removing the window to avoid coming up with an idea of what to hang on the walls.

When we moved furniture back into the house after remodel we did toy around with the idea of the 2 seater on the other wall but it looked even worse. The lamp is only temporary. Something we had before and it moved back into the room but I hate that lamp, it doesn't stand up straight so it will be replaced, hopefully with a table lamp. Beverly.....I agree about the area rug. Definitely looking for a bigger rug. Again, this is just what we had and reusing until I find something else.

No suggestions on what to hang on the wall other than how everything existing is all completely wrong?

I think you need some colour in the room, so I'd hang a series of frames/prints, etc between the shuttered window and the door. With a series, you wouldn't have to worry so much about centring them over the sofa or on the wall. Larger rug, as suggested. I would remove the love seat on the right-hand side, and put two upholstered, swivelled armchairs there (a pattern would liven things up).

Enjoy your new room!