Now it's beginning to work! Luv the rug! A few more red showstoppers, and I luv the post about matting your family pic, and larger frame for it. Looks like you might be a bit uncomfortable with the great post idea of moving your sofa out into the room away from wall. If so, could you accept putting it diagonally from the entrance doorway, across that corner where it is, stopping at the edge of your window? That's a bit of a move outward, still can see the fp and tv, and show off your new rug, which could go diagonally in front of the sofa. Then, if you like that, after a while you could move it on out as Deb K suggests. Sometimes intermediate steps are more doable for us than those big changes.Same with painting; if you could first paint just the fp wall, then later paint other walls...seems some color would really make it more homey. Would you cosider a quite contemporary fixture for the light in the center ceiling? Maybe a bit of red could go there!

Thanks for posting new views of your room. You are right, nothing can go in front of the paneling, and we won't block the built-in cubby. In that case let's work with the rest of the space. I found a picture on Houzz for your gallery wall. I think this will allow you to bring in color and texture and interest to your wall without taking up space like furniture would. Try to play with portraits and a couple of paintings in there too - mix it up. Otherwise I would not put anything at the top of that landing (I'd remove that console table). That picture wall should be enough visual interest to your space and it'll draw the eye to the furthest wall as you walk in your house. I would try a small piece with closed storage between the bottom steps and that door by the entry. It looks like the space is no wider than 26", so it'll be a challenge to find something that fits and is tall enough. I would not use the wooden piece you showed above because you want wider proportions and fairly narrow depth so you don't bump into it as you walk by. (something like this ) I would hang a mirror on top of primping. By the cubby you could add a single seat stool. I'm not particularly suggesting these colors for the stool and bombe chest but something along these shapes. At this point if you do that big picture wall and add these two pieces of furniture and a mirror, you might not need to hang anything on the wall above the cubby. Also, I noticed your chandelier is quite substantial for the space and hanging pretty low. Would raising it a little or replacing it by something a little smaller be an option?

My ex-husband and I had an issue with a large window that looked out over a sidewalk where people were constantly walking by and looking directly into our living room. We solved the problem by using window film that was one-way so we could see out but it was like a mirror if anyone tried to look in. There are other varieties as well. We still got all the sunshine and light but didn't need to worry about whether or not the neighbors could see me watching tv in my nightie on a sick day...It also meant the door to door salesmen couldn't look in and see that I was home when I didn't answer the door. http://www.gilafilms.com/en/privacy-window-film.aspx#.VOuUBS5vksQ

Thanks for the replies! My wife suggested we talk to a local real estate agent, so i think that is a good idea... just that Im not sure how helpful they are likely to be if we arent selling yet :) As for saving for our dream house, I dont disagree, however if doing this up nicely over the next ~5 years or so while we live here nets us some extra in the eventual sale, then that of course will help us as well. Interesting thing happened today actually. I got a knock on the door and one of the older neighbours asked if he could take some lemons from the tree. I of course said yes. Anyway he was telling me he had lived in the street for 40 years. I asked him if the house had always looked like this, and he said no that ~30 years ago the old old owner did a massive renovation and pulled off the timber and put up the bricks and gutted the inside of the house. Interesting stuff!