You can put the TV over the fireplace, not the best situation but the way the room lays out it is the only logical place to put it. If you could you should add one additional layer on your mantel that could extend it out another 4" to deflect the radiant coming from the fireplace. I would also mount it on a slimline mounting bracket and have the bottom of the TV no further than 4" above the mantle. Ideally you want the TV to be in as straight a line as possible with your eyes. You don't want to look up too high at the TV, it's like being at a sports bar. Also if you can snake up the power and the HDMI from the cable there is a box they make that has both in one so it makes for a very clean installation.

Here it is (but I'm guessing it will be available from more places): http://muralunique.com/index.php?route=product/product&path=53_56_77&product_id=937&sort=p.price&order=DESC

Excuse my duh-ness but i'm having difficulty trying to follow whats going on here. Are these two photos an exact replica of your house and pool ? If not a hasty sketch with dimensions could help a lot. By kitchen wall do you mean the wall behind the bar ? And where is the pool wall ? Are you considering the covered area as being "inside" ? Sorry for all those questions lol Sometimes when you have a design problem you need to turn it inside out or on it's head. If you can't beat it maybe embrace it by making a feature of it : i.e. contrast by having the lightest colored pool surround and a great blue or tile inside and under the overhang, something that will echo the water color ? If you have a great covered area as in photo you'll most likely be spending a lot of time there and it could be soothing to be able to sometimes retire into a darker inside. In my book, 10M isn't small and also contrasting two floor colors doesn't necessarily make a space seem smaller and confined and may in fact even open it up. Could it be that you've thought yourself into a box here ? Sometimes one needs to give it all a good shake up and see how it resettles.

Wow, that was awesome Mark, thanks for that and everyone else. I thought about the desk facing the other way actually, to avoid feeling enclosed I do have really great views there so I thought about a small couch and maybe a bookshelf on the back, but having the dining table in front is probably not the best either.... complicated :( Here are a couple more pics, today was a beautiful day so I managed to get more of the views