Hi there. take it easy. you will find your bliss on houzz. there are so many great possibilities for this room and definitely within budget. bascis: make a list of possibilities, make an ideabook on houzz. start discussing the ideas. Don't rip out the hearth, make it work double duty.

Since on a budget; begin looking at pillows (all shapes), and paint colors. Other than that, find a way to discuss an area rug for at least this room. Save for a rug and some accessories (occasional chairs and tables or ottoman style table.

I will post a link or two to get you rolling. Loved your post. Would make a great column...

http://www.houzz.com/photos/modern/family-room/fireplace-with-cushions-

this is only a start.

Love the TV. Def keep that. Looks like there's lots of light and the woven shades are in style. I'd give your fiance more credit. It's not bad at all. Just needs some pop of color.

Yes, the extended hearth is weird but until you decide whether to leave it or remove it, paint the stone to match the fireplace and add some cool Mongolian sheepskin pillows from West Elm to create a hearth seating area. I would also look into investing in the services of an electrician so that you can eliminate the exposed cables, wires and TV components to the right of the fireplace. Consider an area rug to conceal the carpet until your floors can be addressed and neutralize the bachelor pad sofa with a linen draped slip cover from Pottery Barn. This is a nice sized living room that has a lot of cottage style potential with the whitewashed stone.

Oops, forgot to attach the slip cover photo.

Hi, Tee Jay! Love the post. Our team seems to think that the TV is too big for the space you chosen for it, despite the dislike of the rock behind it. A piece of metal wall art may help "calm" the rock more, and then you could place the TV against the couch wall on a console that can also house the components you have sitting by the door, which will also allow you to take down the speakers from over the windows. In time, you could replace the couch with one more suited to the space, but in any event you could move it to face the TV.

Driving focus to your big TV by "pointing" the couch toward it may also help dial down the prominence of the rock. Add some inexpensive floor lamps, a rug and an ottoman to tie your chosen style together.

We hope these ideas help and wish you both the best of luck!

Paint the TV wall (including the mantel) black or dark gray. The TV will disappear. Just a thought...

Boy, like judyg's room - love the white on white kinda thing - also agree with ATG above regarding TV being too big and drawing all eyes to stone wall. Also the cords and stuff at door must go! As cannot see the other 2 sides of room, don't know if couch could face toward the wall couch now sits against. but can see it facing the fireplace. For starters, move it to both spots and see how it looks.

Also, does fiance mind changes? Sounds like it was difficult to simplify collection of acquired memorabilia. It might be difficult to persuade him to put TV on existing couch wall.

Paint , then rearrange (you will know immediately what works best), rug if can . Just wondered, did you bring items with you? Perhaps some chairs, table, lamps to add the feminine touch you feel is lacking here?

Please post as you make changes - these houzzer all-stars can really help!

I think you should def take some suggestions from judyg...very nice.
I think the room is great personally. LOTS of potential. And as far as the hearth going all the way across on one side. I'm digging that too. Make that a seating area with a plant. It's right beside the window. You could put a floor lamp in that left corner on the hearth for some extra light, if it's just too dark for you now.
I know I sound like a broken record on here sometimes, but I am too on a tight budget...Look up MERETE curtains from IKEA. They are your best bet/quality for the money. $25 for a pair of panels that are 96 inches long. You can leave your woven blinds and hang the curtain panels from ceiling to floor. They come in bleached, brown, purple and beige. They even come with tape/adhesive to hem to whatever length you want. You'll need curtain rods of course, but you can get those for cheap anywhere.
You can also get a wall unit or shelving for the wall where the couch is now if you want from IKEA. Or 2 chairs on that wall with a table between them and a lamp on the table. I agree with moving the couch off that wall and facing fireplace!

I think the hearth stopped short of the entry so you wouldn't fall over it when entering the room! Your DIY skills might work to transform the FP to something more traditional like this. You shouldn't be worried about the hearth as you can transform it into extra seating easily. I agree with those who want the TV on the sofa wall. I think you could use a sectional here, pulled right out in the middle of the room.

TeeJay, I am in love with your space. I think Dick Clark would have fit in beautifully with the whole Fred Flinstone fireplace going on. I am not digging the TV though. It just feels like it needs to be bigger and i think the speakers centered over the window are not ostentatious enough! All the carpeting needs is a coffee table that doubles as a shuffle board table or a pocket pool table. The other thing this room is missing is some sort of bar with a lava lamp on it!

All joking aside, this space is somewhat challenging. Aside from the aesthetics, the layout of the windows, fireplace, door location don't easily allow for a TV & a sofa anywhere other than where you have it. You could try facing it to the fireplace but that image isn't shown. The first thing I would recommend is sitting down and figuring out a budget. Try and be realistic and then add at minimum 10% to it since that is how much you are most likely to be over budget. While you are budgeting, also estimate how long you are planning on staying in this space. The longer you are planning on staying the more "investment" chances you can make.

Ceilings are easily scraped free of the 80's glitter popcorn and a few coats of primer/paint makes it merely a memory. If you live near any metropolitan area, they run sample sales on furniture where you could find a great sofa/chair/coffee table etc. at deep discounts that cater to more of your traditional style and have a bit of design other than barcalounger.

FIREPLACE: I hate to say it, but there is not much that can be done to make those giant jagged rocks look good. Sure you can try to paint them or build millwork around them, but in the end you would just be putting lipstick on a pig. If you are staying there for any length of time, rip that out! You will just make yourself insane trying to make it look somewhat decent. They are not river rock or cut stone and they will never be.

I think once you have a budget, you can see whether it is just paint and pillows or drapes that you can afford. Also, your dark blinds aren't helping your light problem. You can get relatively inexpensive white wooden blinds at Home Depot or even Ikea that would help lighten up the room. Also, if you are in a bungalow you could ave an electrician install can lights in the ceiling since you are going to be removing the glitter pop anyways.

The TV is overwhelming the fireplace/hearth and making everything darker with that huge black space. I can't think why people are telling you to put the TV on the sofa wall: put it on the wall opposite the sofa wall. Your fiance is handy enough to build that shelf and attach it to the brick. Get some inexpensive modular bookshelves/storage unit and build all that equipment, including speakers into it. You can make it traditional by adding moldings to the unit after you place all the pieces together and/or look for a coherent unit that everything fits into. Make sure all this is white to keep the place from getting darker with wood tones. Paint all the stone surrounding the fireplace except the horizontals. Eventually get a new sofa, but for now, you can slipcover it with a throw after you move it parallel to the fireplace. Use the fireplace ledge as seating: you should get a broad flat cushion and then more cushions for people to lean against. Paint the walls any light/bright color you choose. He likes brown/brown and more brown. I hate brown. You probably can live with more of it than I as you love warm, earthy colors. You need to balance the brown with some bright earthy colors like red and gold/yellow.

Get a torchiere that spreads light onto the ceiling.

http://www.ebay.com/itm/House-Troy-NewPort-Pewter-Torchiere-Lamp-N600-PTR-/280705978386

Pottery Barn doesn't sell the pewter one I have any longer. I was surprised how much light it bounced off the ceiling, brightening the room everywhere. But you have to have one that throws light upwards.

Your write up was a hoot and is, indeed, publishable. It made me want to help you.

I don't think the room is hopeless at all, but if the other rooms are small, the darkness is bugging you. The shades are in, but contribute to the darkness. I would work around them for now as you should but your budget somewhere else.

Could you stand a bright color on the walls? Could he? I like pale wood floors, but few do.

The main problem is all that black equipment scatterer around. Coral all that first and then see how you feel about proceeding.

If you put all that on the wall perpendicular to the entry door, the darkness of the TV is hidden when you walk in from outside. If you put it on the sofa wall, you are going to see that big/black screen first thing. Also it make the screen the focal point when you walk in. I don't think anyone wants the TV to be the first thing anyone notices. Tucked into a unit along that wall, no one will even see it until they turn to face the wall. I watch TV lying down on my couch so it would be the best angle for me. Then you might put another chair in the left corner, which would be facing the TV unit. Keep posting!!

I didn't read the other responses, so I apologize for my laziness if this is duplicate advice.

1) I hate to say it, but I think the TV is too big for that space. And I'm a man. And I love movies. But it is crammed in there with no visual space around it. How about moving the TV and the surround sound / stereo to the basement (give your fiance a man cave), and putting a smaller TV above the fireplace? You can get small to medium sized flat screens for very little these days.

2) Regarding the plywood, can that be replaced that with drywall? If not, how about covering it with a skim coat of mud so that it will look like drywall? After that, I'd paint it the same color as the walls.

3) I like what you did with the stone. It looks good. And I like the wall color.

4) Since your house is a ranch, you have easy access to the space below and above this room. So adding some canned lights in the room wouldn't be any problem at all.

5) Add a coffee table.

6) It's pretty monochromatic looking as it is, so it could use some brightly colored accents. I could see a collection of tall pottery / vases on the hearth.

You could remove and replace the face stone with a nicer stone. In our area manufactured stone costs $14-20/sf installed; pretty inexpensive. Another option is cover the stone with a custom wood mantle, and hide the hideousness.

Tile over the whole thing including behind the enormous flat screen or clad the whole thing in hot tolled (blackened) steel.
ArchEle.com

You have to move the TV. It is way too big for its current location

I would move the TV ASAP. Waayyyy too big for the space

The room is kind of dull; you need to add life to it by changing the color. You could also install colored metal shelving racks for storage. These units will make the room more dynamic, this link has more information on the matter: http://www.justshelfit.com/metal-shelving-racks-for-storage.html

My friend used to have an awesome 3 wolves painting, and two very cozy recliners then he got engaged.....sigh

Perfect room with a few changes that you could do as budget allows.
You can remove popcorn yourself--I've done it and it was really fun. Remove everything, cover carpet and go for it!
Remove both sides of fireplace hearth to a few inches on sides of fireplace. You can then tile hearth to your taste.
MOVE TV. Way too large. Place on opposite wall that sofa is facing. Purchase inexpensive unit
Paint entire room except fireplace and purchase sisal area rug. You could even paint blinds a lighter color.
Put chair, table, lamp, in corner windows. Leave couch current location but put one large pic on wall behind. This will mirror new TV wall. Either one or two chairs facing fireplace, table, lamp.
Faux fireplace rock is fine for now. Accessorize wall above and new hearth simply.
Hope ideas are helpful.

Perfect room with a few changes that you could do as budget allows.
You can remove popcorn yourself--I've done it and it was really fun. Remove everything, cover carpet and go for it!
Remove both sides of fireplace hearth to a few inches on sides of fireplace. You can then tile hearth to your taste.
MOVE TV. Way too large. Place on opposite wall that sofa is facing. Purchase inexpensive unit
Paint entire room except fireplace and purchase sisal area rug. You could even paint blinds a lighter color.
Put chair, table, lamp, in corner windows. Leave couch current location but put one large pic on wall behind. This will mirror new TV wall. Either one or two chairs facing fireplace, table, lamp.
Faux fireplace rock is fine for now. Accessorize wall above and new hearth simply.
Hope ideas are helpful.

Could you find or make a trifold or one single board that sits in front of the fireplace when you are not using it so you don't have two black holes in the fireplace (tv)? Then I would get rid of the log carrier and put a nice basket to hold some logs under the window on the extended hearth. I would put the couch facing the fireplace with a colorful quilt that drapes over the back of the couch. With this placement you might not notice the hearth so much. Paint your fireplace screen to compliment the quilt. I would put the fireplace tools on the other side of the fireplace to help hide the cords from the tv. Can you hide the speakers with plants? Get some bright artwork to put on the walls. I would go for an informal adirondack, camp, or lodge vibe. Then his dream catchers and animal prints might could be worked in.

How bouts you try a mix of Nascar memorabilia, and Indians/wolves on cheap silver mirrors and dreamcatchers from the 70's hanging in corners? That could really jazz the place up for you!

To save money you might want to de-popcorn the ceiling. That would not cost a lot and that way you could look up with out wanting to PUUUKE!!!

Actually, that ship might have sailed. When he popped the question, that was your chance right there. Did he distract you? Were you taken by surprise? I thought you didn't like sparkly things?

I would add some roman shades inside mount as opposed to the outside mount bamboo blinds.

http://blindsdirectcanada.com/blinds-toronto/roman-blinds-shades.html