I think it's the lineup of bar table, TV console and then the bookshelves that bothers me most. I would like to see a comfortable chair at the near end of the sofa, facing the window. I would put the bookshelves in a bedroom and acquire a somewhat larger entertainment center that includes some bookshelves, but all in one unit. The round chair seems to take up a lot of space but is probably not used much since it has no view of the TV to which we all seem to be addicted. If it's mostly unused, I'd get rid of it.

Or you could just mount the TV on the wall such as in the photo below. This room has a wonderful minimalist look which may be possible for you...more likely if you don't have children at home than if you do.

There are all kinds of rugs that would work for you and www.rugstudio.com is a great source.

A colorful rug will only make it look cluttered with a colorful rug....

you need some items that are strong, something above the sofa, straighten up those lampshades. Add a shaggy rug.......off white

you have a lot going on already

Thanks all. So many good points -- I think I have a problem of adding without subtracting and you're all right that in a small space, this should be a zero sum game.
1.) We do have a wall mount to install, but I struggle with how best to store the tv box, etc. Especially without interfering with asthetics. Any thoughts?
2.) Move the bookshelf to the bedroom! AHA! I've been struggling with that darn bookshelf for so long, I don't know why I've been so hooked on keeping it in the LR.
3.) DH loves that darn cirle chair. I could do without, but for now, I guess it stays.
4.) Loving the idea of a shaggy rug - I've been looking at low pile, but a nice fluffly texture would really spruce up the place. Any color or item suggestions out there?

Thank you all for the help and inspiration!

Laura

I agree with Gary that a cream shaggy rug is a good fit. It will balance out the brick wall and the dark furniture. If you move the bar cart and relocate book shelf to another room, hang the TV and replace the console with something like the picture I've attached (color optional). I might also reconsider the chunky coffee table. Small spaces need pieces with small dimensions. Good luck.

Love that brick wall. You can use infrared controllers that allow you to tuck your electronics away. Something like this http://www.amazon.com/Sewell-Infrared-Control-Repeater-Controls/dp/B004FJV8EE/ref=sr_1_1?ie=UTF8&qid=1360000042&sr=8-1&keywords=ir+repeaters