You need a three seat sofa and two upholstered armchairs. They are the most flexible to arrange. Meantime, it won't break the bank to move the TV connections to the wall where the two art pieces are. If your home is over a crawl space, get a longer cable cord, pull it from the current location and drill another hole in the floor to pull it through at the new location where the two big art pieces are. Put the sectional in the TV corner under the windows. Place the bookcase on the wall where all the mirrors are and style it with 1/3 books (hard back books standing, leaning, lying to support decor items,) 1/3 large decor items and 1/3 open space. Put the globe on top of it. If you think either of those walls need more, you could hang the 6 mirrors vertically 3 & 3 on each side of the bookcase (middle one at 5' above the floor and the one above and one below) or you could hang them around the TV. Hang the 2 pieces of art where the bookcase is now, one above the other with the center point 5' above the floor and one hand's breadth between them, or hang one each side of the window. Get rid of the box or chest under the window. I like the dining room art better than the mirror. If there is a wall opposite the dining room window, hanging the art there might pull more light across the room. Why don't you arrange this and take more pix? We can help you find a rug & curtains once furniture is in a better place.

Presuming you want to keep your furniture, I would try placing it across the room by the windows, with the back running perpendicular to the window wall. It's hard to say without measurements if it could fit. If there is enough room to pull it toward the tv a bit more, then i'd add a sofa table with lamps behind it, creating a little barrier when you come in through the door.

Can the chaise switch sides? If so, I might also try it in the corner where the tv is now (or even if it can't switch, if it wouldn't block the passage to the dining room).

“Is there anything I should get rid of?” Yep. The sectional. It’s way too big for this small room. I agree with deco’s first 2 sentences: you need a 3 seat couch and 2 armchairs. They are the most flexible to arrange.

Can you flip the sectional so it sits in the corner, in front of the windows? Then, place the tv where the two pictures are hung, and place your bookcase facing the door (on the wall with the little mirrors.

It wont let me comment with a photo of the progress....so I updated the post. Thanks!

Wow, you're fast. That seems to work much better. What do you think?

Consider pulling it away from the wall a bit, maybe put a sofa table with a lamp behind it, so it doesn't look all squished into that corner. Is the tv too far away? If so, you could put the tv where the bookcase is and hang it with an articulating/swivel arm so you could easily aim it a bit more toward the couch.

I love the changes! If you can swing it, do the sofa table/lamp like Olychick recommended - plus... add a large area rug under the sofa, and a coordinating rug under the dining table, and add accents/textiles (pillows and throws)/artwork in the living room to pull in the red wall color. You might also want to add roman shades to all the windows to help coordinate the rooms.

I like your rearrangement. Now for suggestions.....The coffee table is too big. I would like to see a round ottoman there. I would put your little mirrors around the bookcase...three to each side. Get a end table with lamp for the end of your couch nearest the dining room. Maybe a tall plant on the other end of your couch. To soften the room, if you want to, I would get some sheer curtains for the windows Also I would pull your sectional out away from the windows...looks sort of shoved in. Pretty dogs.

It really opens up the room but the entrance needs work. Olychick- I really like the sofa table/lamp idea! I am thinking about getting a bigger tv during black Friday and possible mounting it on that wall. Sammie J- Yes, definitley need some rugs to make the space feel cozy. And good idea about the red accents and the curtains. I really do not like blinds!

The only thing I do not like about these changes is the placement of the book case. Should I move to another room or move it to another spot?

If you have another spot for the bookcase, I'd move it ... the artwork from the dining room would look great in that spot!

Can the bookcase go between the tv and the white door? It will block the view of the side of the tv from the door, and help create more of a small entryway.

Big improvement! Once you style the bookcase and get some of your wall decor back up, you'll want to start shopping for a rug. Ruggable.com has washable ones designed with kids & pets in mind.