I am probably the last person to get this right for you. But here goes. I do think a celery green on the walls would be wonderful because I am partial to greens. The rug couch and cubes are all good together.

I would pull the couch up over the edge of the rug to ground the couch or pull the rug back to the couch which ever fits the space best. The front of the couch needs to be on the rug.

It looks like too much space between the couch and cubes. Might just be an illusion so if they really are that far away to be used as ottomans move them closer to the couch.

The red pillow is not the right red for your room. Maybe go more on a burgundy or green.

What glares at me is the dark hole of the TV set up. Can you set the TV on a small wood dresser or something other then what it is on? Or hang it on the wall? Spread out the components some and make a better living space for the VCR or DVD , game, or whatever it is. And move the stereo. If that is impossible can you cover the base of the stand with something cloth?

Now crazy me. If you do not need the long curtains to cover the windows for privacy and warmth. I might move the whole rod off to one side and let curtains just hang on one side. .In your dinning room area do it one on left side of window one on right. But then I am a virgo and need to see balance. Some one else will have a better idea.

I can not help you at all with art. I have very little and what I have certainly will not be your style. This is coming from a thrift store shopper is why.

So now I am done.Great space to work with.Love the rug and cubes. I am sure some one else will have much better ideas. Loving those darling little tables in the corners too.

Chris

We have a room that is similar in a lot of ways. It's nice to have a large gathering room, but it can be a decorating challenge, I know.

The television looks a little crowded where you have it now. Would it be possible to move it to the wall where you have the cute baby parked? You could place the sofa parallel and pulled out from the wall, so it's not so far away from the TV. Don't be afraid to pull furniture away from the walls and to group it into conversational areas. It looks like you have room for another couple of comfortable chairs to pair with the sofa. The window where the TV is now could be another seating area.

Since it's all one room, I would use the same window treatments throughout. Also you could add some accessories to unify the space, like pillows, art, baskets, vases, etc. Think of layers and texture.

I'm sure others will be along soon to help you out more. These are just some thoughts I had.

Great couch...wondering what it would look like on the other wall?
Then you could have the little tables on either side of it.
That might open the room right up?

Yes, take a pretty sage color right out of the rug & add long drapes to finish off the room. :)