First I have to ask, how committed are you to keeping the big giant blow up bouncy houses in your living space? There is just no hiding them or disguising them. So if you really want to keep both of them, you will always have a room that screams toy haven. Is there a spare bedroom where you can keep the larger one? Or reserve it for use outside? I think the front room will work really well as a child's play area. Using creative storage, covered baskets or even cubes on your white book case can help conceal some toys. Since you are facing into the living room when entering from the front door, if the room with the fireplace is arranged in a cozy manner, that will be the first thing you see. Is there any way you can put the couch beneath the window, and the TV next to the fireplace where the white chair is? This way when people walk in they don't see the back of the couch and the TV facing them. Maybe you can move the chair to the corner of the play room, with a small storage cube ottoman in front to hold toys. I agree, I think your dining area should stay close to the kitchen in the blue room. Otherwise it will be completely impractical when serving dinner or having guests over for a meal.

I ran baseboard for years as Casey described... measure your cuts, make a list, go to remote cutting area, go back and nail. We also used to use this same method on a two man production team, one guy "nailer" makes list for room or next few sections, hands list to "cutter", cutter brings back and scatters ahead of nailer.. repeat/repeat/repeat to do a complete house. Same method works equally well for casing and crown molding. On new construction as well as major remodels we would typically have a "shop" set up in a garage or large room for all cutting and sawdust, this way painters as well as other trades can continue working...

As long as the two side windows match, you have symmetry and could do something entirely different with the center window; however, unless you want to make that the focal point of the room, "same" would be much better. Try to find sheet rock (or plywood) the same thickness as those pieces removed -- or use some slightly slightly thinner -- and attach those to both upper and lower areas. The bottom should be easy enough smooth with sheet rock mud over and around the replacement piece you add, especially if you've used a wood putty or caulk to fill in where the pieces meet and smoothed that and let it dry first. It is only if the thickness of your filler board it considerably less that you'd need to add extra thicknesses sheet rock mud to level the surfaces. Same applies to the top of the niche ... except that IF you need to add extra thicknesses of sheet rock mud to level that top area, you may need to apply it in thinner layers and allow each layer to dry and adhere to the surface before applying the next layer -- otherwise gravity could undo your work. All three of the windows next to the ceiling are so high that, unless you're unusually tall, there is no "view" thru them anyway ... just soffit. What you will see mostly is the upper part of the niche. If your repair of the upper part doesn't turn out as well as you'd like (or if you're worried it will not), then I'd think you could choose to add a thin piece of smooth sanded lauan (really thin plywood) to the top of each (3) upper window niche and finish around the edges of that. ... The difference in the (both smoothed) surfaces, once painted, would likely be unnoticed. ... Since the bottom of the window frame cannot be seen anyway (because of the height of the window and the depth of the window sill), the fact that there is a lauan depth less of top window frame visible above than is visible below should not even be noticed.

Appreciate your inputs, please keep them coming. To answer a few questions: The rug in the picture is just temporary, until we find a good match. Thank you for the suggestions, gave me ideas for the rug. Checkered chairs are black and white, which I was a little skeptical about when I ordered. Wanted to have the end chairs different then the side chairs. If anyone has other suggestions for the chairs, would like to see those. Bench was something which I saw was in trend these days and my family liked the look of it, for me it looked good but did not give me that complete look of a set. I can surely change the chairs and bench. If someone has ideas what to replace with, please suggest. I am looking to liven the room and not just plain black white and grey. I was thinking a modern farmhouse or modern contemporary theme for the room. Looking forward to more suggestions and comments.