Hi Gabriella, I just wanted to tell you that snapfish is one of those site that can't be shared, so anyone wanting to see the pics, has to sign up and open an account. ;o)

The natural jute or seagrass rugs will not look as good on carpet and may permanently discolor the carpet. Plus, it is just another edge for kids to trip on, so I personally would not layer flooring in that room just for looks. Reluctantly agree with above poster who speculated that bar table, while cute, would end up as a horizontal surface only (read: repository for anything you need to put down) and not as an eating area. I would maybe get a bigger ottoman than the chair (if you replace the chaise) would need, and get a nice big melamine tray with sides and a handle for the top for their food. (If you decide you want to try a table I wouldn't try a round one if it is going up against a wall for obvious space considerations, and I would get a regular height one, not the pub height...... think kids horsing around and falling off those high stools, their center of gravity is pretty high.) I bought a bolt of green and white mattress ticking fabric online years ago and had slipcovers made for two sofas. The slips outlasted the sofas! The navy and white (more in real life like navy and off white) is very durable if the fabric is cotton twill and woven, not simply printed on the surface. If you google signal flag pillows (images) you'll see an embarrassment of riches. If you go the signal pillow route you can always just do solid color pennants on the rafters. There are etsy shops that will make them to order in the colors you desire or you might find them already made. I have to say though that I really like the flags on rafters picture posted above!

I think your first task is to find a rug to set the tone for the room. You could have carpet bound in the size you need if you want to stay mono-chromatic. A tone on tone rug in cream, tan and chocolate might add a neutral but interesting touch. It only needs to be a couple of feet wider than the sofa unless you add new end tables that you want to sit on it too. I would keep it 12" away from the hearth though. Once the rug is found, if it has a variety of tones in it, use the darkest shade for your chairs. Be sure and take your tape measure with you so you can determine the right height on them. I don't think they should be taller than the sofa. I don't think the two chairs have to match, and it would be nice if one of them had a pattern to the fabric. Here is a mono-chromatic room, but with a touch of pattern and texture.

Thanks @Beverly for the visuals! It definitely helps to see the potential for the room. Ironically, I saw a swatch of the rug before I ordered it and it seemed more beige even though it was described as "ivory." Thanks @Louise Smith for your suggestions. I'm not a fan of bright color rugs but I realize that others may have different tastes, especially on a forum like this. I'm planning on getting a 9x12 wool rug though, so not necessarily an inexpensive purchase. I'd like something that will last and would rather make changes with smaller accent pieces over time.