Thanks guys, I love the idea of the two matching chairs and ottoman. The kids are nearly grown out of the "little/coffee table" the floor tiles sound fun... we are in New Zealand and they aren't a big thing here, so I had never considered it. I'm thinking of introducing teal, to contrast to the red in the rest of the room (you can't see in the pics, but I have a massive red painting and a red rug in the tv nook.

@kmkane... The "old thread" comments, at least from ME... aren't for any other reason than letting some contributors know, that the advice they might believe they are giving, may be moot. I know that when I 1st became involved on Houzz, I was glad when someone indicated that I may be addressing a question which had probably been answered months (if not years) ago. Helped me "learn" to check the original posting date before blathering on about an issue someone was no longer interested in.

squeakerd - it is really hard to get a perspective on the whole area but if this is part of a much larger area then I feel you need to first decide just what you want as the end result. Do you just want your entire area to be one open plan or do you want to break it down into visually defined areas within the open plan. As you have the area now, I don't feel any cohesiveness between your table and the sideboard, I think I would move the sideboard to the end wall, it looks more like it would belong there, even just by the shape of the room. Definitely a larger rug will define the space better - just be careful of any trip hazard with the door nearby - but before you decide on the rug, consider window dressings and whether you want things plain or introduce some bold patterns and what colours look best in the area. Artwork can go where your sideboard is now, but again think colours and impact of design on the whole area. It is all very well to build a room around one piece, but you need to look at the impact that piece will have on other items and what limitations it could cause. I would suggest you set aside some serious time to look through photos on Houzz, especially if you can find areas similar to yours, till you find what appeals to you, put the photos into your ideas book and use that to build your room. I have found this invaluable in the past and it has saved me many an expensive mistake.

I would wait for the rug, until you have the shutters up and your furniture placed..it may take on a character of its own and you'll want to compliment. My first thought though was to coordinate with your kitchen and incorporate some black, with a black/beige stripped rug, which would be fun with the wallpaper and perhaps paint your chairs black, add the shutters and you could paint the window trim black and add a large black chandelier.