i know this is major, but have you considered sky lights? Can i see a picture with all the lights on. Perhaps adding a chandelier in the living room would help.

i lighter area rug too.

Paint the walls a lighter neutral color. Also add lighter rug with interesting design. I like this room!

Remove most of the brick-a-brack including the plants.You want to create a feeling of space. Do you really need that table under the clock and that pot flanking the fireplace?

You have a nice combined space and lovely kitchen. What I think is lacking is a layering of light sources. Hard to see in the picture, but it looks like you have recessed cans with spot or flood lights in the family room. These emit a glare into the room and are not flattering on the people sitting beneath them. I would consider a lower wattage bulb there just for ambient lighting and use floor and table lamps for another layer of lighting. Also, at your fireplace, you might consider directional lamps that could highlight a focal point above the mantel - maybe art or photography. A mirror, too, would reflect more light back into the room. Also, depending on the type of recessed can, you can swap out the baffle for a darker one that will absorb some of the glare. A console table or even the demilune table to the left of the television could go behind the sectional to provide another location for a table lamp. Good luck!

What color would you do our hardwood floors Deb? We are going to be redoing them and our staircase as well. Any thoughts?

Well, dark floors have been trending but that may not be a good fit for you. I would suggest toning down the "orange-ness" of the floor. Maybe more of a medium pecan stain which would look beautiful with your kitchen but still by light and airy. Duraseal Golden Brown by Minwax would be nice.