Great space, love the room.. Have you ever considered painting the ceiling in a fun, vibrant color? Might be just the thing you need to brighten up the space. If you are in the market to look for new furniture pieces, be sure to check out www.bryght.com, they have stylish, modern pieces without the markup. Happy Decorating!

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.

How about a horizontal weave-style fence for privacy, plenty of seating for dining and relaxing, with separate sections for each function. Moving the trees is a good idea, to open up the entire space.

Provided there is 1200mm clear between the breakfast bar and the opposite bench then by rights, you should have ample room and if that's the case, I think I would opt for the design with the kitchen on the eastern side. My reason; you get a much greater feeling of open plan by having the dining and lounge on the North/South plane. I like the large WIP in this one - on paper at least. The second plan somehow feels wrong. I personally don't like the idea of having the breakfast bar being located in the lounge. If it were me though, I would ask for a 3D CAD plan of both kitchens [to walk through on the computer] before making up my mind on which one to opt for as it gives you a much clearer vision of what the finished kitchen will be like rather than looking at a flat plan.