Are you doing a total redo of the room or just looking to update FP and paint shelves and wall? What styles do you like?

I think paint would go a long way to update the built-ins. Are you opposed to altering them beyond a simple paint job? I think they would look really nice if you extended the shelving up to the ceiling and added crown molding throughout the room. Removing the brass fixture would do wonders as well.

If you search "fireplace flanked by bookcase" (select photos), you will find tons of inspiration.

I realize the furnishings in this picture aren't in line with what you have in your room, but this is close to what I had in mind for the fireplace and built-ins. (I saved this image for our own project, and I can't remember where I found it. I'm sure I found it here on Houzz, just wish I could credit the designer.)

I think with a few big and small changes you have something great (or at least liveable till you redecorate).

First you have way to much going on there. Let's simplify it a bit.

Remove the top from the piece by the sofa. Also the shelf in back of the TV. Take the smaller table (remove the top also) and move it to the other side of the TV. Put the TV on the Larger piece and the piece under the TV where the larger one was. Center the TV and cabinet in that wall corner so it's at the proper angle for viewing. Paint the accent color wall the same as the rest of the room it's currently to dark for that area and makes the ceiling look lower. Paint the front of the fireplace black.

So far you have purchased paint and spent a bit of time. Not knowing what other decorative items you may have we'll use what you have already. Put the lamps on the mantle remove the clock.

Now you need to get a large print. That will go over the table by the sofa..adjust it so it looks good to you. There are rules to hanging art and basically it should be at eye level.

You guys haven't done badly and with a small investment in some paint and a painting you have some great beginnings. Once the room is neutralized and you have selected a painting you can start thinking about adding in other accent items.

From there you can start thinking about what you would want in terms of a remodel of the room.

This is a web page to show you how to clean the fireplace http://www.wikihow.com/Clean-Soot-from-Brick

It will most likely be a total redo of the entire room. We are getting new furniture as well. The furniture in the room was left from the previous owners. We also would like to continue our laminate floors into this room. Do you suggest painting the built-ins white? I hate the doors of the built-ins, they look very old. I am wondering with some paint and new hardware if they will look better?

I would paint the cabs white or gray. If the doors are solid wood, see if you can turn them around and use the back of the doors as the front by flipping the hardware around. I agree with previous post to take them higher if possible.

Oh, and yes to the laminate, and paint out the brass with high heat paint.

I like that! The problem is the TV... I posted the other photos of the rest of the room. It is a pretty small room, we only really have room for a couch and a chair. We want to get new furniture and a whole new color scheme as well. We really wanted to figure out what to do with the built ins/ fireplace first. Also behind the back of the built-ins has wood paneling too, which seems odd to me. This is our family room, the room that we use the most, so we do want it to be cozy. We have another more formal living room in the front of the house.

We also want to paint our trim white.

Give us the room dimensions indicating the doorways, windows and the fireplace you can hand draw the plan and take a photo of it.

Paint the cabinets white including the fire mantle and change the hardware. I like the stone leave as. I like the idea of extending the shelves up to the ceiling with bead board behind the shelves

It's not uncommon for built ins to have panelling at the back. When you decide on a colour scheme you can add wallpaper or fabric in the backs to comfy up the room. A great way to do it is cut Masonite or similar wood to fit, and then cover that and insert in back of cabinets. All the other plans of painting built ins and trim and laminate flooring and furniture will update room, then you can add touches to make it homey. Area rug, pillows, curtains etc. just remember it doesn't happen all at once, but it can be planned. Do you have any inspiration photos of what you would like the room to look like as far as decor and colours?

I really seem to like light brown/ cocoa colors mixed in with blues. We haven't bought new furniture yet but we have 2 shedding dogs, so it will most likely be brown leather. What color walls do you suggest with dark furniture? I really want this room to be brighter.

I think a silver blue with white trim would brighten the space and bring in a hint at color without feeling overpowering. Semi gloss paint is amazing for reflecting light plus its easy to clean.

I like the wall colour in this pic. BM Winter Soltice. It looks nice with the white woodwork and light floors. It would look very nice with brown as well.
http://houzz.com/photos/3745819

Angling the TV in front of the built in makes it look unpurposeful. Any chance of removing one set of shelves and putting the TV on one of the cabinets next to the fireplace? Would it even fit?

Another possible option would be to mount the TV flat against the perpendicular wall on the right, but on an articulating arm so it can be turned to view from the sofa.