The room measures 11' 5" x 11' 5", not including the tiled entry. The ceilings are cathedral.

This is what I was explaining. For your space a console as low as possible would be best so TV isn't too high.
http://houzz.com/photos/5610632

My first thought was that this room looks like you've got a nice canvas there and you can really make it look the way you want! I just wanted to comment that you should add curtains, then read MarleneM's post and I totally agree with her! The photo she posted is beautiful, I hope you get inspired by it!

The photo below is from your ideabook. This would be a soothing palette for this room, and all of this furniture is available from West Elm.

I agree with putting the sofa where you have it now and the chairs facing the wall with the TV on a long low cabinet.

Your shutters are beautiful, so I'd skip the curtains. I'd find a place for a tall plant and a graceful floor lamp. A few pillows and you're done.

We just moved the new furniture into the family room and put our old stuff in here temporarily. Here's a picture with the old furniture , just to show the high ceilings and windows. The high window in the living room is actually a pretty stained glass. I like everyones suggestions but Im not sure I want drapes, the shutters are prettier in person than in the photo. The walls are a beige with a subtle grayish green tint to them( previous owners painted ) The carpet has specks of rust and very dark hunter green along with browns and beiges. Wouldn't you know I like blues and purples....but don't think I can pull those colors off with the carpet and walls.

MarleneM , Thank you! Yes, the low console with seating underneath is a great idea!

MarleneM, I LOVE the photo of the french country furniture, its what Ive been searching for !

Groveraxle, Thank you for bringing that saved photo to my attention. I'll check out the furniture store you mentioned! That room is pretty and would be sized perfectly to this space.
I better act fast, my husband is already telling me how much he likes our crummy old furniture in the living room!

@cgoss53, you're welcome. French Country is a pretty room isn't it? I really like the sofa with the one long cushion, rather than separate ones. You're right, you don't need curtains. It's a personal choice, and I was suggesting side panels only that wouldn't cover the shutters. But use the funds towards beautiful furnishings, it will be $$ well spent.
As far as colours in your room, from your photos it looks fairly neutral. You can hide a lot of the carpet with an area rug also.

Maybe we should help you shop, lol! Here is a sofa from West Elm.
http://www.westelm.com/products/ainslie-sofa-h488/?pkey=csofas&cm_src=sofas%7C%7CNoFacet-_-NoFacet-_--_-

Here's the Chester shown in the inspiration pic above:

MarleneM, Yes, I love that one cushioned sofa too!

May we see the wall opposite the window?

Decoenthusiast,
The wall opposite the front window is part of the future dining room, at the moment there are asst. items. We are still in the process of getting settled in.

More views from living room.

MarleneM, Thank you, yes, I definitely need help in shopping and making up my mind! Im starting from scratch in so many rooms and love so many different looks...its overwhelming !

I had not heard of West Elm until I came on this website and I just found out theres a store here in Scottsdale , Arizona ! Woohoo ! Who wants to go shopping?

You may also want to check out www.zgallerie.com. I think the style is similar to West Elm, IMO.

I think that chandy is going to be way too large for the room size and for the table size you can get into such a small space. Is that end of the room included your your 11'5" x 11'5"

MarleneM, Ive been looking at a certain couch at ZG. You're reading my mind. I think it may be too deep for this room though.

Decoenthusiast, No, the 11'5" x 11' 5" is the space I've allotted for the living room...almost up to the window in the dining room area. Its a tight squeeze, I know. The entire length is 20' 8"
The tiled entry hall is another 6 feet wide along the length of this living / dining area.

cgoss53, I quickly did up this room plan on an 11.5' square room. The sofa size I used is 82x38. What size is the one you're looking at?

MarleneM, Oh thats great! Is that an app that works without Flash? I haven't found one that works on my IPad. The couch I bought was 115 inches long! Ha! Lesson learned ! I bought it because it was on sale and the colors went nicely with the carpet , NOT because I liked it. So, Im actually glad it was too big for the living room! My husband likes it in his TV / football family room. I now know to measure and plan ahead and not allow myself to be swayed by a great sale. Id like to find a smaller couch around 70-75 " closer in size to a loveseat. The one at Z G is off my list !

@cgoss53, the WestElm Ainslee sofa I suggested is just 80.5", and the WestElm Chester tufted Grover showed is just 77". Both would work in your room, and I think a loveseat would be too small.

Hi how have you designed the space ? We re buying a home. And living room is exactly like this..