I would face the sofa to the FP/TV. 2 swivel chairs at window end. Not sure the room is large enough to visually handle the fabric required in floor to ceiling drapes. Decide on a rug before choosing the sofa and chair colors.

You could use a small sectional and two lounge chairs with a coffee table for the room.

Can you do a quick floor plan with dimensions?

So you will get suggestions that actually fit the space, otherwise we are all just guessing.

This is the hard part isn't it. Don't forget storage furniture and where you will want art or mirrors. The seating is most important, but without storage furniture it's begging for clutter development. Watch that you don't block the floor vents with the furniture. Also, will you ever need the space for overnight guests? Are there others living in the house? Do you want a table in this space?
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I totally agree with light-blocking floor to ceiling drapery. I wouldn't want to look at my neighbor's house either. And the light interferes with TV watching.
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Can you explain why you wouldn't want the TV opposite the fireplace? That's the obvious best location to get the right height. Is the natural daylight the problem? Does the setting sun shine on the TV in the evenings when you watch TV, even through draperies? Is it a bad view from elsewhere in the house? I'm sure you have your reasons. I'm just curious. We live being able to see the TV from our kitchen if we need to get up for beverages or something and don't want to miss the action.
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