It really is a great space. Above the fireplace, have a sheet mirror cut to fit inside the recess and glue on..maybe make it 1/4" smaller all the way around then add "MirrorMate" framing just for gluing on the surface of sheet mirrors. Check it out.. http://www.mirrormate.com/ Next drapery panels for your windows. Hang them high enough that they will be just under the beam on the right hand side. They should hang off the window and be a simple neutral lighter than your wall color (which is really great) Also consider hanging a single panel between each section. This will soften the space. Look for a corner TV cabinet something like this http://www.overstock.com/Home-Garden/Hurley-Walnut-Corner-TV-Stand-Media-Cabinet/3534046/product.html?cid=143974&fp=F&TRACK=CSEShopping&mr:referralID=351a544e-890a-11e2-a969-001b2166c2c0 Add a new, larger, patterned rug with COLORS in it. Something like this http://www.homedecorators.com/P/Balcony_Rug/310/ Use the colors in the rug in stripe & small patterned pillows on your chair & sofa. Replace the coffee table with something glass & aged metal something like this. http://www.overstock.com/Home-Garden/Slate-Glass-Steel-Coffee-Table/2536119/product.html?cid=202290&kid=9553000357392&track=pspla&ef_id=USr15QAAAYSHsTvV:20130309224545:s

Accessorize when you are done.

Thank you for your suggestions! Do you think that sheers would work? I have hesitated with that because there are 8 windows and 4 of them are in the kitchen. Would I just stop the curtains where the living room ends? (I just realized that photo isn't showing all windows and can't figure out how to add the picture!) I like that tv cabinet a lot! The rug is nice ... I have such a hard time with sizing! I'll have to look into the mirrormate, what a great idea!

For rug sizing, use a roll of toilet paper to layout different sizes on your floor. Have the rug go to your chair and cover a fairly large area.

I would consider hanging panels on all of them. Ready made panels in a simple neutral, linen like fabric, made of a synthetic fiber for easy care. I would look for the loop back panels. Regarding a rod. I have used wood closet poles from a Lowe's, they come in 8-10' lengths, cut them to what you need and you can get double ended screws to screw them together, you can stain them or paint them. There are simple round finials in wood that will just screw in the ends and wood brackets for support every 4-5 feet as necessary..It really is inexpensive and easy to get exactly what you want.