Thanks for your responses. Yes, it is a true built-in and bigger than 36". We should know early next week what the warranty company is willing to do and what the costs are for the repair. They have not been very responsive in getting back to us. You'd think with a refgrigerator in the desert, they might move things along a bit faster!

Oh that's so funny, we have the exact same floorplan. I was not open to putting the TV on the wall opposite the windows b/c then you'd have to put a couch in front of the windows and face away from the backyard, plus block the view. Definitely not putting a TV in front of the windows so that only leaves the fireplace wall. And the built-ins were already there and they take up every single inch of that wall -- no drywall at all. Our windows go all along the family room wall and then all along two of the three walls on the breakfast nook bump out (the third wall has a door to the pantry) and then it's all connected and open to the kitchen. With the way our built-ins are set up, there wouldn't be enough room for the tv on either side regardless. I like the room in the above link that has the TV in built-ins to the side of the fireplace and doors are covering it so you don't have to have it in view all the time. Another thought is raising the hearth of the fireplace. What gets me is the staggered look of the tv next to the fireplace, but not at the same level. Wouldn't want the TV super low so raising the fireplace would allow them to be more even. I don't know...just a thought. Overall, I'm ok with our TV being over the fireplace. If I were designing it, I would probably have done it differently. The mantle is higher than standard so our TV is higher too. I'd make the mantle lower if I could have. Then the TV could be a little lower as well.

Just finished going over dimensions, etc. with my DH and I'm still not sure if it will bug me or not. The mattress will be much lower than the top of the nightstand. Sheelsback, They do know at the shop and the owner says that they will make it right if it was their fault (which it is). jlc, we haven't bought the bed yet, so it can pretty much be whatever will fit (but we really couldn't do smaller than a queen). And I really want it to look built in, so that is good that you think it will. Olychic, I don't think I could get this particular carpenter back at all (and he is really amazing). Because it is an insurance claim, I can get him to do it on the side while all his equipment is here, etc. for much less cost than if I hired someone to come in and do it separately. Also, I am so charming that he is willing to do it as a favour (that and the fact that when I described to him how I was going to do it myself, he almost passed out). I think I will probably keep them and hope for the best. But I'm not going to decide tonight.

I'd suggest looking at houzz.com. You'll find lots of inspirational photos there...search on built ins in living rooms.