what are the dimensions of the space (floorplan would be great)? the "lit" room in the first photo -- is that the kitchen?

i assume the main function of this room will be family TV watching(?) ... sounds like you also need a home office space (?) ... any other functions the room needs?

is there furniture that you already own that willbe coming into this space, or is everything being purchased new?

The lit room is the dining room. Escrow hasn't closed yet so will need to go back over there to get dimensions. There is a room off of the smaller room which could also be used as a guest room/office. We aren't married to having the office as part of the family space but just not sure about how to use the space effectively.

Forgot to add: we plan to purchase all new furniture. Added some additional pics from different angles

How about a pool table?

If you need some idea's for the walls, feel free to take a quick peek at some of out many theme options art-wise at http://www.yellowkorner.com/

The smaller section of the big room could be used as a library and reading area. If that interests you, you could place bookcases along the back wall. I like the Billy bookcases from Ikea and they give such a great look at such a low cost, particularly when the added height sections are used.

You have challenges in the large section inasmuch as the walls on one side are full of windows and the other side has doorways and other openings. The big wall at the kitchen end of the space would be fine for a TV if you have a dining room elsewhere and don't need that area for dining. Is there a dining room elsewhere? Is there a breakfast area in the kitchen?
Carolyn Albert-Kincl, ASID

There is a full dining room behind the door with the light on. The bigger since is definitely the TV room. I like the library idea a lot.

Thanks for the added info, dancingirl. When you get in to take dimensions, we can talk more about what pieces you need to buy and what size they should be. We'll also need to know how many are in the family and/or how many people need to be seated on a regular basis to watch TV.