Thanks everyone for your advice and help. I know I must look impatient, but I've been staring at this stupid wall for months and months. What seems like minutes to y'all has really been months for me. I tried the easiest suggestion of disassembling the sectional and it simply just doesn't work. If it broke apart differently, but it doesn't and after breaking it apart and slinging the parts all over the room I've abandoneed that idea (which would be a great one if the thing would break apart right). While it is a great suggestion and was my original concept for the room, I've already had the sectional under the window and it didn't work; it is too wide and accentuates the narrowness of the space. I know this flies in the face of magazine decorating, but I think it is silly to have a room set up so you can't really watch the TV when the major purpose of the room is the TV. But if I also don't want the TV to be the first thing a person sees when they walk into a room, IYKWIM? I really like the moulding ideas. I've been thinking about that and seeing pictures inspires me and will help me explain what I'm thinking to my husband. Good ideas there, well, good ideas everywhere; I wish I could make some of these ideas work. I guess I have to make a decision: fashion or comfort. I have another couch and loveseat that reflects my taste better, more french country, but they aren't nearly as comfortable as the big, sprawly sectional and I think I might have to repaint since there is a lot of green in the other set. We bought this sectional because our entire family could sprawl out and watch TV, but now we're empty nesters and I'm rethinking it. Finally, dawnp, I do love this picture a lot. If I keep the sectional then that is maybe a good direction to go.

You can use sheetrock with M2Tech which is impact resistant and very durable, also moisture and mold resistant. In comparison to regular sheetrock it was designed with greater resistance to impact or other abuse. That said wouldn't be easier to teach them not to run a tricycle into a walls :-)

Thank you for your input. Okay, I'll nix the battens. It sounded like a good idea but the more I thought about it and studied the basement, the more I began to wonder. I ordered the longer drywall but they couldn't get it in so I'm stuck with the 8ft lengths. I was thinking of putting them in vertically as I'd only have side seams and the one along the ceiling. Is vertically wrong? A knock down technique might work. Or maybe I'll price out getting someone to do the taping and muding. I hate to spend the extra money but it if looks really bad and needs to be redone or takes weeks to finish, that's not good either. I've been watching this series and he has some good tips: https://www.youtube.com/watch?v=7VpzUYln8g4 Hopefully I can at least hang it myself!

We will be getting colorful pillows/throws and new carpet. Way too much brown in this room. Painting the walls aren’t an option now. They all run together and we would have to paint everything