I'm so confused

Pull your rug out and take a good photo of it. Then use it to cruise www.ARKfabric.com and see what kind of prints there look good with the rug. Then shop locally to see if you can find a similar print to the ones you've pre-selected online.

Some inspiration, like the curtains

Some more inspiration, big arch floor lamp, great for reading and crafts and can be moved in all directions, have one in my office with sectional, a map as art, great for the kids, love the map mural wallpaper, guest will love the map also. As for sectional I'd go with a charcoal colour adding green as accessories. Another idea which is a cheap way to recover things, have a look at drop clothes, very durable and easily washed, you can always paint your desk or furniture with Annie Sloan chalk paint, hope there are some helpful hints for you to ponder

Sounds like a great plan to make usable space. I'd definitely add one additional accent color in your drapes, art, pillows etc -- something intense because all your other colors are muted. Maybe some of the guitars are bright colors?

Here's a good looking concept similar to what you plan to do. This one happens to be a trundle bed, so if you find the space can't handle a 2-mattress "sectional" you could try this arrangement.

A multi purpose room indeed:)

Place the sewing machine facing the window if possible , dedicate a wall for the guitars , get a larger rug if possible I like the one that you have a lot but its a bit on the small size. keep the room fresh and bright .

Nancy Ingram, thanks for so much help! The color in the rug is actually more of an olive green, and I'm a bit worried with all of the hanging plants a green couch would be a whole lot of green. But I wonder if a gold you mentioned might work, too - maybe not as saturated - more like a wheat? Hmmm... I really love the simple yet interesting and beautiful window treatments in your last picture. Hadn't even thought of something like that, and I was just so hoping to get some new ideas! So thank you!

decoenthusiaste, I had no idea such a website existed! This will help me with MANY things, THANK YOU! I like to think I know my way around prints that can co-exist harmoniously but I'm afraid I just don't have that gift, lol!

blenheimnewzealand, thank you for the inspo. I am very excited about the guitars, although he just has one traditional acoustic, a bass, a mandolin, and we were going to hang my son's little pretend guitar up too, just for the whimsy ;) So they'll be all different sizes - I think it'll be fun to play with the arrangement.
I definitely definitely definitely want to do a large map. We're homeschooling, so we *need* one, right?? lol Any insight on how the arch floor lamps do with kids? I can teach him not to hang from it, but no doubt the baby will be pulling up on it. Are they pretty stable even under such circumstances?

pdk920 I tend to go overboard with color very easily. I agree the colors are muted, but I also think the ones in the rug are pretty saturated. I am a little unsure of what would be a complimentary pop. I'll keep my eyes open, I've been looking at 2016 color trends, but I also need to check out ColourLovers and see what kinds of combos pop up with the olive and charcoal... got any suggestions? Oh! However, my desk chair is 70's orange, I think a little splash of orange-patterned (not solid orange) here and there might be nice? The acoustic is a pretty orange-toned element, too.

Thank you all for wonderful help thus far! I am so happy I asked!

decoenthusiaste Thank you for saying that. I kind of feel like the daybed look is a big no-no, but I am also thinking that I don't want to crowd the room. The two mattresses we have are actually not the same height, so it will be tricky to build platforms to accommodate the height difference, and honestly I'm not sure it's worth it. I measured the two mattresses stacked today and they are about 20" high, about 2" taller than our normal couch. I wonder if that's too high to be comfortable as a couch (my complaint with daybeds I've encountered). If the stacking will work it will mean I can do this project 100% myself instead of adding it to the long list of honey-dos. Not to mention much less fabric and sewing!

Nancy Ingram I'm looking closer at those bolster cushions - how neat! Never have seen anything like that before.

Lol as far as arch lamp goes, lots have very heavy marble bases, but I think more important where you position it, could tug behind desk or sectional near end

Putting two twins together is a great idea for sofa/guest bed. Since the bed will block the window a bit, I'd suggest simple Roman Blinds. Check out Penney's for Roman blinds at a great price. As far as the fabric for the beds, I think finding twin comforters you like and sewing to a custom fit would be very cost effective. Having the guitars hung above the sofa may not allow a map as well. For the opposite corner where you desk/workspace will be, it would be very nice if you could get inexpensive ikea bookcases with doors to hide the clutter when you use the room as a guest space. Sample of fitted twin bedding in a corner situation....

Check out this sale for Roman shades for your window. Great price. The reviews are great too.

Penney's Roman Shades

Here are two more photos of that trundle bed I posted yesterday. Looks like a simple DIY for you. Looks like they've made corners for each end of it similar to the corner headboard on the bed at the bottom here. Pretty simple to do.with plywood, batting, fabric and decorative nailheads. You can use a rollout trundle bed frame under whatever you build for the second mattress.

thank you decoenthusiaste, those corners do look like something I will do. I can even use materials I already have and just get hubby to cut the boards to size and I'll do the rest! :) excited about that.

I know it doesn't look like much but I've been working on this room like crazy. I opted to stack the mattresses for now. Brought in the kids' books and a floor pillow. I also hemmed the curtains and added white panels that we already had as a temporary solution to the gray panels not being quite wide enough, but honestly it looks bad. I plan to make some conduit curtain rods (existing one is bowing) and lower them a bit, I think that will solve that for now. Still would really love to get a Roman shade in there - I love the look of a reed one.

So, new question! After looking at tons of inspiration I fell in love with the bohemian daybeds. I am really really trying to work with what I have. The camel-colored covering on the top mattress is a large heavy curtain that we had. It is enough to make a sturdy slipcover to protect the mattresses against the kids clamoring over them when it is not a guest bed. My question is does the old drape work? I would have loved to get a variegated medium gray linen or burlap-looking upholstery fabric on there or maybe even something velvety, but I have this. Thankfully, true to our lifestyle the bed will probably be littered with throw blankets and pillows. I put a few of my fabric scraps on since pillows to get an idea of how it could look. I think I will aim to lighten things up with the lighter/fresher patterns in the pillows, but I may need to scrounge for more scraps :).