I don't recommend mounting the tv above the fireplace.

2 reasons:

1. Neck strain. My Nana has hers in a niche above her fireplace and unless you have seating that is more of the "movie theater" persuasion, it's uncomfortable after a while, to say the least. By the looks of the existing furniture, it doesn't look like it would support your necks over a period of time.
2. Heat rises. So does soot. It's possible that it could damage the tv. Gas or othewise, I would be concerned about possibly ruining the tv and having to purchase a new one.

stacey,

i would paint the entire room that gray color of the fireplace wall. i would end the painting along the arches. i would leave the underside of the arches the original color to match the adjacent rooms.

Talia, at first I was not crazy about mounting the t.v. over the fireplace, but i loved the layout you proposed and am really warming up to the idea...  what to do w/ the a/v equipment i wonder?  my husband is an electrician and can run the wire pretty much anywhere, but this is an exterior wall - i don't know if the wire can be dropped down into this area - i'll have to check.

dbornsztein, i added two more pics to my post - the first of them shows the entry way - all that sets it apart from the rest of the living room is just the door, a dropped ceiling (not part of the vaulted ceiling) and a tile floor.  There is a door to the left of it that leads to our office (the door is double doors on an angle to the front door)... the last pic shows left of the tiled entry - this is the back part of the long living room - as you can see i've been playing around w/ some pictures, etc. here so its not clean - never mind my breastpump in the pic - i've got a newborn so it stays on the couch - forgot to remove it for the pic!!! :)

Thank you guys for your help so far!

you could definitely mount the tv above the fireplace and place the sofa in front of it, if you like that idea. if you do not like that idea, then i think you need to make the tv area the focal point of your room, instead of the fireplace. right now the problem is that the fireplace is the focal point but nothing is really drawing attention to it. if you choose to change the focal point of your room to the tv area, then i would definitely suggest trying to find a larger, taller, tv cabinet/console, again, craigslist might have something affordably, or ikea of course. you could also remove the large poster hanging above the fireplace which draws a lot of attention to that area and hang some smaller black and white photos or something. the vases look really nice, i would think about adding another one to the right side to balance.

could you post a picture of the entry so i can see the painting dilema...

windows: i think window treatments that contrast more would actually look really nice... maybe satin like talia recommended, or something that looks heavier than what you have, and a darker color.

dbornsztein, thank you for the great tips - I totally agree w/ removing the two wooden frame chairs from in front of the windows.  I always think we'll need the extra seating, but keeping them around just in case is sort of stupid and definitely looks odd.  The curtains are actually a dark color - the blinds were open in the pic and make them look like sheers - they are khaki and contrast with the gray accent wall - however they are so plain - i wonder if white would be too stark a contrast here... 

The other walls (and most other walls in the house) are a very light gray.  The problem w/ painting here is that, the entry/front door is right (basically inside) next to the living room and the wall carries over into that area.  I just dont know how to split up the space with out it looking funny = or if we'd just paint everything the same.  Any recommendations on paint colors?

Felisaudis, I agree - the couch running the width of the room vs the length would definitely detract from the rooms LONG look, however, the armchair would look lonely and small in the couch's current location.  I wonder if an angle would work here - perhaps put a large round rug down?  What to do with the back 1/2 of the space (opposite the fireplace)?

THANK YOU SO MUCH for your help so far!

hi stayce33: i think this room has potential. the fireplace is beautiful, and most of the furniture is quite nice. i would maybe try swapping the locations of the sofa and tv. i would put the sofa against the longer wall, maybe frame it with some book cases or something, fill up all that wall space. i would put the small entertainment center along the smaller wall, and frame it like you have done already with the lamps. the entertainment center is quite low, you might want to add some height somehow, either hang something up over it or buy a taller entertainment center (craigslist roundup may be able to help on curlbly). i would remove the two blue chairs from in front of the windows, and put plants there instead. add some color by changing the cream colored shears for something a bit brighter? you could move the chairs so that they are facing the fireplace, at a right angle to the sofa. now what to do with the extra chair?

have you thought about painting the room? the fireplace wall looks like a nice color.... i think painting the other walls might make the room feel a little more inviting.

let me know what you think.....

Hmm... it'd be such a waste of a lovely window to put the TV in front of it...

What if you swapped the sofa and armchair? Having the couch at an angle with 'close' the room up a little more and you can have your choice of TV or Fireplace viewing with no neck strain. It will also change the line of the room and detract from how long it is.