Thanks everyone for your replies!!! The mud room door cannot really be moved, because there is a stair case behind it to a bonus room, so it would be misaligned. Also there are other issues with it too, such as a load bearing post being on each side of it. The regular ceiling heights in the house are 9 feet. The tower does face the front of the house. We are absolutely open to remodelling and changing furniture, in fact we just tore out a closet anyway. So we're in the middle of renovating. We're trying to figure out where to put the fire place. The best place I can think of so far is on the right wall, having the middle of the fireplace on the corner and boxing it in, so that it cuts into the foyer slightly. Its not the perfect solution, but seems to give the most usable space for furniture? I was wondering if anyone here has a better idea :/ We'd prefer to use a direct vent gas fireplace. We just want it to be a cozy living room for occasional TV viewing, not sports or anything extreme like that. Just the odd regular tv show while talking or something like that. More of a living space than a dedicated TV viewing area. About the barn door slider for the mudroom, that is an interesting idea, but wont it let cooler air in as well as noise from the laundry there? Right now its a weather proof door (the type used on garage entrances). Unfortunately as I mentioned, moving the mud room door is quite impossible :/ PS. For some reason terriks image isn't loading up, even after sitting for an hour+ on this page. Here are some pictures of the room as it sits right now (nearly empty). (We took out some tiles near the entrance, so disregard that, assume we can patch in the floor however we like and tile the foyer in any shape.): http://gallery.me.com/lupinglade/100016 Here is a link that might be useful: Room photos

You can probably do a sectional here; just be sure to measure carefully because your sectional will need to be a pretty specific size. Just know that you will never change your furniture arrangement. Two sofas are actually more functional than a sectional. No one can really sit in the corner and with two sofas in an L-shape, you can put an end table there. I think the TV is in the best place it can be. The mantel is way too tall for it to go there, and a TV in front of a window is a no-no. A corner TV isn't desirable either, but it's the least bad of the options.

OK, let's start at the beginning. How many people are going to need to sit in the living room? Do you really need a table that seats 8? i think you need to ask yourself some critical questions about how your family or you will use the space. Living in it for a minute might help that. The front door area is much too small to be a living room of sorts. The best I can see in that space is maybe two chairs but it still cutting up the whole flow of the front area, that should really just be an entryway. You said no tv in here, is there another space for that? Or are these the only functioning living areas? Is the door in the kitchen to the garage or to a laundry area or pantry?

I've been managing vacation rental properties for 18 years, so first, I'd want to know the maximum number of guests you can sleep here. For starters, in the "day room," do you think people can see the lake itself if they're seated there in regular chairs? If not, you may want to consider a bistro table and chairs at one end to give people more of a perch. At the other end build in an "L" shaped bench that is high enough to afford sight of the water when one sits there. Add a custom table with it for a spot to set down drinks or to play a game of checkers. In the main room, place TV on one of the walls left of the FP. There would probably be less glare if it were immediately left of the FP and not opposite the windows. Seating will depend on the number of guests who may want to sit together to watch a game, etc., so the numbers will help determine what you should do about seating.