What are your concerns regarding the chimney? Assuming you have child safety plugs already installed in the receptacles, the only thing I can see that could be a safety issue is that cable looped around the light fixture.

How hot do the radiators get with the covers on them?

This room looks like it was enclosed and previously a porch, as I see clapboards. I'd likely start by painting the room a lighter color.

A comfy chair for you. And shelves with bins for storage and books.

It depends on the kid, but for quite a while mine either wanted a parent nearby, or I sure wanted to keep an eye on them (especially one of them).

I don't see cords for the blinds, which would be a child-proofing concern if you had them. The low sills on the windows mean a child could fall out if the windows were open (it looks like the room is on the 1st floor, but still).

I'd get a kid-size table and chairs (we had a set from Ikea).

New walkers--I assume your 1-year-old is a new walker or soon to be one--love push toys like shopping carts and doll strollers. My daughter would tear around the house at 90 miles an hour with her nanny-share buddy. Your current rug situation isn't ideal for this activity. A larger continuous low-pile or flat weave rug for the whole space would keep speeds in check but still allow for smooth rolling.

I would consider something like the IKEA Kallax for storage/bench seating under the windows. I had this pinned. http://www.iheartorganizing.com/2012/04/playroom-progress-sweet-seating-part-1.html?m=1

i would also consider putting those foam mats the puzzle link together underneath the rugs to give extra cushioning, a soft floor space is always nice.

This is already so helpful. Thank you all! Sammy, YES about the cords. There are two in this room that I need to cap or otherwise "disappear." To answer your question, the brick is old and really sharp. (I know that sounds weird, but it's true.) I wonder if NoSoccerMom's idea about bookcases/storage could happen around it.

My3Dogs, that's a great question about the radiators. We haven't had to use the heat yet, but we might soon! I'm hoping that they don't get too hot, as the covers don't touch the actual radiators much in the front. And good news is that the covers have backs, so I'm hoping they're not falling hazards.

Cawaps -- Great ideas! Thank you! Yes, a new rug is in order! I'm torn between going with one of those foam square things in fun colors and keeping it more "grown up" with a low-pile rug. Either way, I'll try pulling the wall color into the floors without getting things too dark.

You can buy a flat weave carpet and have them put binding around the edges to exactly fit the room, and if it were me, I'd put a water proof pad underneath that. When toddler is older, roll it up and you have your beautiful wood floor again, protected!

One of my kids' favorite toys at that age was a set of foldable tubes and cubes, like a Habitrail for little kids. I loved that it folded up and took up almost no space.

Looks like a really fun room!

GREAT idea. Thanks, Mrs. S.!

A comfortable chair for you, and storage for toys and books and that's all you need. No child is going to permanently disfigure himself on the chimney. And it would be a rare toddler who could climb up, open a window and then fall out. You young mothers worry FAR too much! Benign neglect is still the best way to rear children.