Thanks i just feel so uninspired im actually finding it hard to think straight! http://www.ashleyfurniture.com/Showroom/Showroom.aspx?PageId=Showroom&CategoryID=0&ItemNo=5820117&SetDomTab=4&SeriesNo=58201&CollectionId=&style=&IsClicked=1&CatPageNumber=1&bFromSearch=Y&Keyword=Chaise Thats the link if you want to view the couch Thank you so much :)

Since the color is more modern, try to stick to modern furniture. But that color could also be contemporary so you can also use contemporary furniture

Mona you have seen exactly the dilemmas I'm facing with this room so I really appreciate your comments. I was focusing on no1, but really 2 and 3 are on my mind too. In terms of getting some continuity between the rooms I was planning on recovering the dining chairs in a fabric to tone with cushions/throws on the white couch, ottomans in a matching tone, and pulling this colour scheme through into cushions in the formal lounge. I love the spring colours at the moment (greens, blues etc) which you can see i'm playing with at the moment but you might be able to see the painting in the formal room which is orange, red and yellow with a blue/purple base. So I'm very keen on colour and so tired of the brown carpet and neutral walls. I was also going to restain the dining table and chairs to a dark mahogany colour, and change the bar stools to something more modern. re: rug closer to sofa, I've done this and it looks off-balance with nothing else in the space. It seems to work better in the middle of the carpet area at the moment. Perhaps thats because I haven't ordered the ottomans yet. I don't want to add a coffee table to this room as prefer Ottoman to put feet up on. I've attached a pic of a rug, do you think something like this would work better? re the wall: yes this is the major for me at the moment. It is a TV room so tv and speakers stay and I wont be adding any custom cabinetry. The idea was to increase the space in this room by removing all of the cabinets and they are now in the adjoining room. The speaker covers have not been painted as I needed to work out what wall covering to apply, and colour etc. so once they are painted the wall colour they will blend in better. The idea of shelving has merit, I'll have to have a think more about that... Any other thoughts you have are appreciated.

If this photo from your ideabook is the look you are going for, try adding a rug and inexpensive coffee table. To keep budget down, try an indoor outdoor rug you may find on sale at the end of the summer. The other thing you could change easily would be curtains or other window treatments in a zingy color or pattern. Perhaps there are curtains in another part of the house that could be swapped with these? Try taking them down to get a good look at the blank space possibilities.