Posting a few pics to drool over. These are mainly to show some possible furniture configurations, as well as where to put end tables and lamps. Also, color schemes.

In that second pic with the bold striped chairs, you see the option of using two arm chairs that are placed so close together, they read almost as one. This is a really comfortable way to sit and visit. You feel connected to the person beside you, yet you have your own space - and a place to rest both arms. So, you could do a sofa and two arm chairs.

The arrangement abbyjean suggested is classic, and swivel rockers might make this type of arrangement even more relaxed and flexible. You could fit an ottoman between the two swivel rockers (in front of the FP) and enjoy a fireside chat. Or, you can turn toward a larger gathering of people on the sofa. Again, of you need additional seating, you could bring in two side chairs that would fit between the swivel chairs and the sofa, to give you seating for at least six.

With the 14' length from FP wall to opposite wall, and leaving 3' clearance to get over to the DR, you have 11' to work with. This is a great size for an intimate conversation area. Whoever configured your living room knew what they were doing!