I would move TV and media unit from the window to the wall eliminating buffet and anything between them. Plus area rug.

Your FP is centered in the wall between the windows and the corner. If you move the sectional down a bit and reposition the TV you can add chairs and have a very nice seating area.

Move the TV to the wall opposite the sectional. I would nothave the sectional right against the wall. Move it out a few inches.

Don't select a wall paint until you select a rug. You don't want to have to paint twice.

Different rugs will suggest different paint colors for your walls.

Thanks all for the suggestions… we are going with modern gray, which is a taupish greige… warm and works well with what we are looking for. I love the layout suggestions. We are taking down the white mantle and replacing it with something similar to our flooring.

I love all the suggestions and your plans. I realize this does not pertain to your original question, but one poster asked if your home is a traditional style. If so, have you considered white-painted crown molding to accentuate the wall-to-ceiling juncture?

Our house does have some traditional elements to it, but we have actually done some things to make it less traditional ( like removing huge non weight bearing columns and getting rid of old wainscoting and putting in board and batten). Our contractor actually suggested board and batten around the fireplace to tie it back to the board and batten in the dining room.