use Australian blinds and hang them right under the ceiling so that folds cover walls above windows and create the illusion of larger taller windows. blinds should be color similar to that of the walls
to the empty wall add ether mirrors (like 3 long ones) or wall murals like in pic

On the empty wall, I'd relocate the tv from above the FP and put it there. Also, a more contemporary space would require to cut down on the small accessories. I'd go for a contemporary tv console on the empty wall, an abstract art piece above the FP and transitional lamps. I love the wall color and you have many beautiful things. Just some tweaking, and new lamps I see in your future. If you're willing to relocate the TV, we can suggest lamps and drapery.

I think the instrument candle holders and hurricane lamp is too tall for the sofa table.

I agree with advice. Love wall color, sofa, fireplace & art print, but other accessories could be more streamlined;,i.e., less is more. Love the blinds idea & I'm trying that myself!

You need to add a pair of plain panels on grommets and dark metal rods on each of the windows they need to be hung at least half way in the space above the windows. This will add some strength and softness needed. On the empty wall you have several options. Weightier, larger chairs with a table in between and a large piece of artwork above, You could do a long credenza and put tv above and put artwork or a mirror above the mantle or you could add some bookshelves behind the current chairs. The lamps need to be modern and plain with drum shades. The curtains could be in a nice geometric print ti add som pizzaz

To keep the room on the side of contemporary transitional...a cornice box treatment for the windows is a great idea. It also will help bring in more color and can be done with a couple of fabric. Underneath the cornice box you can mount a duet shade or blind which ever you would like to give you privacy and sun protection! The sofa table looks pretty good....however; you can always use succulent plants here to help keep the contemporary look going. the plain wall could use a large piece of art that is more narrow and long rather than wide. You could also use (since it is a family room) a picture of a family member(s) in a sepia tone! Happy Decorating!

Everyone, thanks so much for your help! The TV was placed over the mantle, because the kitchen is on the other side of the family room. We watch TV while we cook & hang out at the bar. A couple of questions:

If we put the mural on the large wall, would we still put 2 heftier chairs there with a table between them? What style chairs would you recommend? Use the current end table?

What should we do in the corner by the fireplace, where the mirror is leaning against the wall? The ceilings are 9'.

What accessories do you recommend on the sofa able, in lieu of the candlesticks and hurricane?

Keep the 3 large vases on the coffee table?

What type of ceiling fan would you use? I would rather have a chandelier, but DH is dying for a fan with a light to circulate the fireplace heat. ;o)

@S&A Décor - What company makes the wall murals you provided? Australian blinds or Austrian blinds? Can't find an example of Australian. Thanks, again!

Thanks, Decoenthusiaste! Can't wait to shift things around.

Please let us see!!

A picture frame and floating shelve idea could be great! (I also like the idea of leaving the mirror). https://www.flickr.com/photos/wetweekend/6358115575/in/faves-7772631@N04/

For the centerpieces I see something like this: http://www.pinterest.com/pin/554998354051993812/

Can't wait to see how it turns out!

what direction is your blank wall? I refer to Feng Shui to get color and accent ideas. this area might be good to show case your collections because you can see it from the kitchen area and it will draw the eye into the living room to get a closer look. Then the simple floor to ceiling window treatment would balance it.

about the mirror - what is the reflection in the mirror? That is how you tell where to put the mirror. I would put an over stuffed chair, a low set of book shelves and a reading lamp in the are of the mirror.

Thanks for your help, @Patty Rueter. The kitchen stove and hood are directly opposite the fireplace. Looking at the family room from the kitchen, the blank wall is on the left and the window/art wall is on the right. The room is approximately 15'(w) x 18'(l). There is 5'(w) x 2'(d) of space... A cozy space. The mirror currently reflects light from the window, the lamp and the side of the sofa. It bothers me that there is no window on this side of the fireplace for symmetry, but I've put off hanging the mirror or getting a taller one. Thoughts anyone?

I would recommend you to add curtains with color of frame between windows.

http://bahtinov.ru/portfolio/