It will be helpful to see the room from every direction.

First, work out your furniture arrangement. From the little I can see, looks like the best place for the TV is the wall where the stove is now. Then you might get one or two chairs in front of the window; swivel chairs will allow them to be part of the conversation group and also see the TV. (Useful for your yearly Super Bowl party.)

I personally wouldn't do carpet. Hard floors are much easier to keep clean, plus I love the look of hardwood.

Can't see enough of the room to make more suggestions.

First, remove those shades. That will improve your look so much. After your changes have been made use fabric window treatments,

Well start with the bones of the room. Remove the stove and get heat put in. Decide on style windows you want. What is the house style? Can you post a picture of the outside? Decide if you want hardwood floors as groveraxle suggested. While that work is being done use graph paper and play around with furniture arrangements. I'd go with a sofa and chairs rather than a sectional, they will be more flexible.