What a fun space! Love the pillows...I agree with above, lower all the frames, but not so low little ones can reach. The art should fall at eye level about 5'4" for walls and for behind the sofa not more than 12" above it. Then keep the width about 5" inside the sofa length on each side. Your frames are small so you need the close together for impact. I would start with some pretty curtains for the door and large window and then a simple Roman shade for the small window- since your girls play there you don't want anything they will grab hold of. http://www.houzz.com/ideabooks/query/how-to-hang-a-photo-gallery

The ghost chairs are AMAZING! Very strong and stable. It brings a a lot of space for a small room and the loui style are very classy. Ok I will buy the table, it's goof price and I totally love it. I am living in a construction camp at the moment! Everything is a mess but I hope everything will look beautiful when the renovation finishes. I have just moved in with my partner, the typical manly man and I am the typical burly so it's hard to compromise in colours and styles! Plus there aren't many cost effective options in NZ so decorating is basically a mission!

I would move the two chairs against the wall with the table between for a "side" seating area... which can still see the t.v. (needs some baskets or something under that table... a trunk maybe...to bulk it up). Then make an L shape with the other couch/loveseat that you have. You also have great storage along the tv wall but it's kind of bland... punch it up with a color along the back of the bookcases or a funky wallpaper. Drapes for a punch of color with some other accessories and you'll have a gorgeous room. It also looks like you have an ottoman.... put a tray on top and use it as a coffe table for a while.

There is nothing worse than ceiling-mounted lights--harsh shadows, flat lighting. They are strictly for utility. I would put a large-ish, shallow cylindrical shade on them and put nothing more than a 15-watt bulb in them. Use them strictly for lighting your way as you walk through the room. I agree with Vincent; the chair in the corner doesn't fit at all, nor does the one under the A/C unit (put that one with its mate behind the love seat). And the curtains look smooshed. I think the problem with the bookcases is that they are uninteresting. Did you buy books-by-the-yard? What are all those identical books? They are visually uninteresting. I'd get rid of some of them and get some colorful ceramics/glass/photos. The room is absolutely overwhelmed with furniture. It needs one less love seat. Do you really need all of them? Pushing them against the walls/curtains so tightly just visually emphasizes the fact that there is too much furniture. I don't think a mirror above the fireplace will work. When people are sitting down (which is most of the time), all they will see is a reflection of the ceiling--the plain, white ceiling. Get some real art in there with some color.