Agree on the built in shelving. It is better use of money, better for resale, adds a more custom look to the space, and a bit of elegance.

built-ins for sure...can't see the layout of the room but maybe the new shelving can house a flatscreen...a large wool rug with blue and green in it will pick up your walls and new chairs...great room!

Built-in shelves or even free-standing bookshelves will make the most of the footprint space giving you vertical storage. The room will also benefit from their presence and take the eye up. 100% thumbs up on shelving flanking the fireplace - it might have a higher cost and possibly take longer, but you will never be sorry.

built ins for sure, maybe a rug with geometric shapes in a color that pops

I agree, built ins all the way! If you do add the built ins, I would keep your accent tables airy. Metal and glass would look very nice. I would use the grey-blue color in your paisley accent fabric in choosing your rug. I particularly like the way a bold strip would juxtapose the traditional paisley print.

Rugs to consider:

I agree with others that built-ins are the way to go. They will give that FP wall a nice, finished look and create a nice solid wall in an otherwise open area. The vertical aspect of built-ins will also give the FP more heft. I think if you went with two consoles, neither they nor the FP would be shown to their best advantage.

I see a bolder pattern working in your space. Your furniture is classic, as are your lovely traditional FP and millwork. Now it's time for something bold to bring a little excitement into the decor.

I also think a simple glass top coffee table with metal frame will work best in here. For end tables, consider using a round table on one side - perhaps a set of two nesting tables so that you could pull one over to an arm chair when needed. A moveable end table on the other side will keep your arrangements flexible. I think this would resolve your issue of getting tables to work in this area. You could also place a console table behind the sofa if there's room (it's hard to tell from the pics). This way, you could place two table lamps on it and run the cords under the carpet to the nearest outlet. If you do built-ins, it might be a good idea to have picture lights wired into the top shelves for additional lighting on the FP side. Also, a small floor lamp next to one of the arm chairs will give you good reading lighting on that side. If you can't fit a console behind the sofa, you could do floor lamps on each side of the sofa behind the end tables, in which case you would need a round 24" diameter table next to one of the arm chairs to hold a table lamp.

You have a beautiful home there. It looks like a forever home! I'm posting a bunch of pics with coffee/side table and lamp ideas. I see simple and modern pieces working best to bring out the best in your traditional mouldings.

Some end tables and coffee table.

A console table and lamp ideas.

I would consider some kind of lower storage instead of build-ins. Depending on you budget of course. I like build-ins but they are quite expensive. Plus when you have them you have another headache "what to put on the shelves so it looks good" :)
Good like - you place is very nice

here is an example:

http://st.houzz.com/simgs/658140630ea10975_5-8008/home-design.jpg

Just a little update, we received our sofa and chairs. My husband found a local carpenter to build our built-ins on either side of the fireplace. I am very excited to have that done! In the meantime I am still looking for the perfect rug and decided to match pillows to that instead of trying to match a rug to pillows! Choosing a rug is really beginning to stress me out. My max budget for an 8x10 rug is $500.

Hi Sherry, Lovely colors - you'll have no problem finding a rug and pillows to work with them!

Check overstock.com and also wayfair.com for well-priced rugs. The rug below is from overstock. Also, Pottery Barn has a sale on the tile rugs (similar to this overstock one) , and in 8X11' size is ALMOST down to $500. If you love it, you could buy that and just eat beans for a month lol.