You have beautiful hardwood floors. I don't think you need a rug where you have the gray one currently. Look for one larger, multicolor rug for the seating area that combines the warmth of your floors and the grey of the furniture. Maybe even with a bit of the blue from your room above the steps.

OK. I have attached a pic of my living room. I have also attached a few pics of some rugs that have peaked my interest (the yellow flowers being my favorite). The only items in the room that will remain the same are the couch and loveseat. I'd like to keep my curtains if possible, but I'm not opposed to switching them out. Other than those 2 things, everything else in the room will be updated. Thanks for any input you can give!!

Thanks for the suggestions everyone. I like the idea of some blue in the rug to pull from the photo above the fireplace, but I couldn't seem to find the right blue. A lot of the carpets had too bright of a blue. I'm limited to choices though because I'll only order from somewhere that has a store in my area where I can easily return the rug if I don't like it. I've decided to give this Safavieh carpet a try, I have it on order. I'm hoping the pattern and texture will provide enough interest. I'll work on the chair after that. I wonder if a chair with blue in it will still work if I get this carpet? I can tie the chair in by adding a few more toss cushions to the couch with blue in them and a couple of blue accessories throughout the rest of the space.

That is very exciting and you might want to do a gallery wall of his art on that dining room wall. Very special. You can research further and see what you can discover. Thanks for sharing. You might want to contact a local museum and see if they could recommend an appraiser so you could insure your pieces. Obviously, they are family heirlooms so protecting them is key. As a minimum take good photos of everything front and back in case of need to prove their value. Good luck.