You'll find selling furniture on Craigs List or other source and replacing with new is a better investment unless you are your own upholsterer. What's under the rug? I'd take it up and lay ceramic "wood look" tile. Spray paint the red FP surround with matte black heat proof paint and paint the brick white. Then all you'll have to do is pick a paint color that works with your new seating and area rug!

Step carefully here, Cruz--not everybody has a basement with "James Bond ski chalet" potential, but you do! I'm with decoenthusiaste on losing the carpet because it's probably worn out, but I LOVE the red fireplace--think of putting a polar bear rug or something equally fluffy but more environmentally friendly in front of it. I also agree about replacing the sofa and big chair; look for danish, modern or upholstered items that have a groovy 60's or 70's feel. If you google "ski chalet groovy decor" you'll see some images and you can go from there!

What would help this room is not so much adding to it but to take things away. Remove all the paneling and upholstery on the bar. There are too many patterns & textures in this room. The carpet (depending on what is under it & what you can afford) should either be replaced or removed all together. Being a basement it is more subject to the climate you live in that other areas of your house; if you tile the floor I suggest you install a warm floor underneath the tile for the colder months. Re-upholstering furniture often costs just as much as buying something new. I'm also wondering what is above the T-bar ceiling. I would remove that as well to get the full height of the room and replace the pendant fixture with something of a cleaner line. To make the room feel larger paint the ceiling a lighter color than the walls and paint the walls a light color as well.
Hope this helps.

I would leave it just the way it is. Love the vintage medieval style with the touch of "granny's boutique". Just be glad you have a complete basement, i would love to do one up!!

sorry lovie, not sure I have your point?