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

I think the white trim gives it a much more contemporary look. It's more work to have it done in a different color, but the overall look is cleaner.

Not yet. We actually have JUST engaged an architect to draw up an older school house we are hoping to purchase and use as an addition onto the left hand side of the house. Obviously if that purchase goes through, we will hire the architect to work on both the connection of the new building to the house as well as the front entryway. Here is the floor plan of the house. The small bedroom (bedroom 4) sits directly behind the lounge. We are also thinking about removing part of the wall there so that you would walk into the home and see directly into the lounge or turn slightly right and enter the kitchen.

Teal? Just a thought sometimes I think it's smart to match or atleast go with the curtains you'd see in the window