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!

Hi everyone, we have moved in! We didn't manage to paint before we moved and think we will go for a staged approach - above the wood panels first in a warm white then decide on the panels. I'm having a bit of trouble working out what kind of sofa to buy and how at arrange the lounge. All furniture except coffee table temporary in photos and would love some ideas!

Here are a couple of interesting ideas off this website, using a hanging panel, a rolling clothes rack or Ikea wardrobe door. DIY information is on the website. http://www.buzzfeed.com/peggy/room-dividers

What is the rest of the house like? Would you like overflow sleeping areas or more storage? If you can't raise the floor (and the ceiling?) you might consider building in some comfortable seating/storage areas that use pillows/cushions and play up the multi-level idea and make it look intentional. Similar in concept to the stepped couch.