Two more pics... this first is what you see when you walk into the house and the second is the dining room next to the step down living room.

what a wonderful living space with the high ceiling and windows. really like your hardwood floor too. I think you have opportunity to take advantage of the views. I would suggest to move the sofa to the wall and then two chairs across from the sofa with a coffee table in between. two side tables for each end of the sofa, each with table lamps and then a side table for between the two chairs. I would then get two more chairs to go right in front of the window, facing each other and then a smaller table, like a games type table to go in between. that way you orient the room toward the window more vs the fireplace. those two chairs could be swivel chairs so they can also face toward the center of the room when necessary.

I would want larger scale chairs for this room. If you have any friends over 50, you might not want the chairs to be too low. I'd stack the 3 pieces of art vertically in the stairwell and hang new, large art on the long wall and above fireplace firebox opening. The ones in the dining room need to be lowered (centered 5' above the floor and hung one hand's breadth apart.) Would you rather look at the back fence or the fireplace? The trees outside are lovely but the fence is humdrum and utilitarian. How about using top down/bottom up shades so you can hide the fence but still see the trees up top? I think you could use a larger rug, especially if you get leggy chairs. They should sit entirely on it, while the sofa only needs the front 1/3 to 1/2 to be on the rug.

Thanks Theresa. I like the ides of the two chairs by the the window. but I think maybe the table may make it too much furniture crammed in? What do you think of low slung blue velvet chairs to go with the white sofa - which is a good quality sofa that we had someone make removable slipcovers for ( really needed to be able to wash them)?