I agree that finding an Interior Designer to help you discover your goals in changing the space and get you through the transition will make all the difference in creating a happy outcome. Houzz is a great start for gathering your likes and dislikes, so you can articulate to the designer your style.

lovely room and furniture,it all looks cozy and comfertable. think you are on the right track changing the rug will make a huge difference to the room,is there a favourite color you like,from what i can see in the room maybe green?

with those colors i like the combination of this purple/berrycolor...

If you are going to buy a lot of new furniture: hire a decorator to avoid mistakes. If you want to use what you have, I can make some suggestions...but first: are you interested? You have not responded to any suggestions.

what a great room, I'm not a designer, but I can see how you can do almost anything with this space. I LOVE the windows by the way. certainly wouldn't change them. How do you use the room. Is it lots of family time in front of the fireplace? Love the dog...:-), do you have a preference in colors? what color and style is the fireplace?

The rug is a good size but if you don't love it & love the color then change it out. It looks like it's time to replace the upholstery. This looks like a big room so you can go with something amply-sized to fill the room. The petite furnishings are getting a little swallowed up in the cavernous space. Maybe even a large angled "conversation-style" sofa or sectional, with comfy chairs on either side, will work well to frame the fireplace area. It really depends on how much space you actually have. Definitely measure and map it out before you buy. Also, look for upholstery fabrics with color or a darker neutral to contrast the walls. Right now it looks like the wall color & the upholstery all kind of blend together in the photos. Contrasting throw pillows will help add more color/texture & Design interest. The wall of windows could use a straight cornice-board style topper to add a little warmth, color & texture to that side of the room. A large leather cocktail ottoman would look great in front of the sofa. Leather will add richness and practicality - you can put your feet up on it and not worry about it getting dirty.

I agree with the other comments. try to find a designer in your area. If a full time designer is not in the budget, find one who does consultations. And get referrals before you hire one. Some are great and some are not. A great one can save you time and money and help you stay focused.

Many furniture store designers will do this for a minimal fee or even give you a housecall, measure & design drawing for free in hopes that you'll purchase from them. But ask to see pictures of their previous work or get referrals first because some are fabulous and some are not. I've been a professional sales & design trainer to the furniture store business for years.

Thank you for the feedback. @olldj22 I would love suggestions using what I have. @cathyjolio a leather ottoman would be very nice. My family, doggie included spend a lot of time in this room. The dog sheds terribly and the light colored furniture has helped conceal the hairs. I've attached a photo of the fireplace. As seen from the dining area of the L shaped room. I am happy to take more pictures and include measurements as well. I agree that the scale of the petite chairs is all wrong. This is a good sized room and those windows were one of the reasons we fell in love with the house. Basically everything sits in the same spot it was placed in 7 years ago. I'm not very creative which is why I am seeking help...such great feedback and suggestions. Love this site and many thanks for your help.

I would be hanging on to the lovely rugs but building a different world around them. Do you have a favorite or sentimental piece you'd like to hang on to for sure? Maybe the armoire... Sometimes it helps to list the items you really don't want anymore and that begins to nail down where the remaining piece can take your new decor.

Some suggestions.
DR: I like the rug, bar stools, bare windows, paint color, chandelier, furniture, table vase and flowers. I'd remove the runner. There appears to be a table with plants in the far center window. That looks good from what I can see. I'd place the plant on the stool, on the floor (remove stool).
Entry: I'd hang the art a little higher (4 inches?). Art & chairs nice. I'd place the glass balls with crystal bowl on the hall console table.
LR: I love the rug & armoire & would keep forever. Remove blue pillows from sofa. Place white pillows on each sofa end and dog-needlepoint in center as you have. Remove runner from trunk. Over fireplace, I'd have the twig wreath with nothing else on mantel. Have hearth items on one side, one on hearth & one on floor. Place candles on trunk with a few books & empty crystal bowl. Perhaps find a round mirror to place behind the wreath:
Remove brown leather chair & have white and blue chairs flanking the fireplace; sofa can be moved toward DR as needed. Small tables near each chair. New shade for floor lamp Keep 6 or more inches of rug under sofa, but you don't have to keep entire sofa on rug. I like windows bare and would remove shades. Remove art on each side of fireplace. Art on left side of fireplace can go under the art that is behind white chair to balance the long art between windows (move small art up a bit first). Very helpful to arrange room on paper: http://www.ehow.com/how_6699833_plan-layout-room.html
Private decorators are good or Ethan Allen has free design consultations and nice furniture. Many ideas on their website (NAYY): http://www.ethanallen.com/

Inspiration photos:
chairs flanking fireplace: https://www.houzz.com/photos/2001-showcase-traditional-living-room-new-york-phvw-vp~66622
large windows bare:

Thanks for the advice. What do you think? I am not sure what to do about the art on either side of the fireplace. I do love the scroll. I could pull art from other rooms in the house and am happy to take a photo of what there is to work with. The fireplace wall on the left is recessed. The wall to the right is flush to the fireplace. This originally was just Sheetrock. We dressed up the fireplace but I regret hanging the shelf. I loved the twig mirror and am going to search for one or make one with my crafty teenager. It's organic and I love the connection with outside. The shades have to stay as we live in Northern New England and they help with heat loss. I do think fabric panels would be beautiful but Those windows and the woods are wonderful to look at. Should I get rid of the coffee table/trunk that has red wine stains on the back of it? Thank you so much couldn't wait for a day off to make the changes.

I love your room. Good work!

I like the coffee table-trunk and would keep it. If it's a little worse for wear so much the better in a comfortable room. Sometimes I like to use clear Briwax on old wood to rub on and wipe off. Helps to restore the wood a bit but not to look brand new. http://www.amazon.com/Briwax-Clear-Original-Formula/dp/B001E4AQHS/ref=sr_1_12?ie=UTF8&qid=1365557524&sr=8-12&keywords=briwax

If you love the scroll you should have it in this room right where it is. I have many things like that in my house. These scrolls and such are the type of items that give our homes personality & individuality.

I like the way you added the table and plants on the left art side, to balance the scroll on the right side. The scroll is green in color, the plants on the other side are green in color...now, I think you need something green on the coffee table-trunk. Buy your crafty teen (one used to live with me a long time ago) a few sheets of Washi Chiyogami Japanese rice paper and cover 3 books with it for the coffee table. Find a small green print to have the greens form a triangle in the room. Here's a photo of a small print Washi paper but in the wrong color.

Here's a green washi. You could even buy 3 sheets (1 sheet of each pattern) of different more or less coordinating, small print green for the books if they have them: http://www.etsy.com/listing/63973809/chiyogami-washi-paper-green-geometric

If you regret the shelf what about painting it a softer color? This will make it disappear. I think the scroll would look better in a different room- Is there a wall in the dining room? I like the addition of the blue chair. What about taking it into the rest of the room with curtains or pillows? Could you layer a neutral rug over the red just to soften it a bit.? You may not like that look.

Beautiful fabrics. Pillows maybe? With the windows I would like to soften them but don't want to distract the view. This weekend I will gather up the miscellaneous paintings and art that I have never hung and take some photos. Advice on hanging will be great. @Kelly the dining room walls are too narrow to accommodate the scroll. Thanks so much everyone and @olldj22 I am really pleased with the changes you suggested. I will see what "green" accessories I have stashed away.