Sounds like you have a good plan, call an experienced, recommended, reliable contractor. Maybe he/she can help you with an interior room divider, for the front door direct to lounge problem too. Here are some ideas https://www.houzz.com/products/room-divider-prbr0lbl-pl~l_38829

Generally a sofa faces the TV. Not sure if the room is open at the end where you are standing or if there is a door or wall. You could even use the sofa as a room divider where you are standing and leave a walkway behind and on each side for traffic patterns. I would either mount the a TV on the wall it's on, or find a TV cabinet to enclose it that fits the space. Ballard Designs catalog has a shallow one that doesn't take up a lot of depth. I prefer to hide TVs in cabinets unless that is the only purpose for the space. Mounting them and having them in open shelving makes them dust magnets especially since the electrical charges attract dust. The draperies are pretty heavy and a lot of them. I think the room would look more updated and less claustrophobic with possibly shutters, that could also tie in with the ones hiding the opening on the adjacent wall. If using any fabric at all, I'd use only a valance but the draperies are too overpowering. The fabric on the valance could be repeated in throw pillows on the sofa or an ottoman used as a coffee table.

Hi pjfee2...thanks for your ideas. Have to admit I have not given the reno in MT much thought this summer, here!! Actually been finishing our beach house re-build down here and a bit 'reno'd out' to be honest. BUT we head back in just over a month so it’s time I did give it some serious thought, so your comments very much appreciated. Already got builders organized so that’s a start LOL I love the idea of adding stone on the outside to the turret part – but guessing that is as far as the budget would stretch. The siding is in good shape so need to stain it to work. Love the idea of pulling a color from the turret stone to do this. Will get a stone that has some of the log house gingery color in it and then stain the newer part of house a tone of this?? So far I’m sure we will · Rebuild the deck to run across the front of the house and form the roof over the front door entryway · Make the entry way wider and mud room inside bigger · Replace the small window to the bathroom with a door off the deck, matching the French doors. · Replace the tiny window in the turret with a longer one. · Cover turret with schist or stone cladding Not sure about replacing the windows under the deck. Added a picture of them from the inside. This living space is the hardest to figure out how to furnish in this house. It has quite a lot of light from a large window on the left wall - out of this shot - and across the back of the room through a wide door way to the room at the back. Thinking of opening up this wall? And from the inside they seem pretty well balance? Big problem in that room is that there is not a lot of places that we can use to create a sitting area. Need to get a couple of sofas in there and push them around to see what will work. It has 4 doors leading off and as you can see large log posts dotted about!! ANDd a stairwell going down to lower level and garages. Not a lot of space to play with. OK time for another coffee...its 7.30am down here!!

great storage