Okay, so this was the room that got us started. It is two steps down from the main level. I wanted to move this desk out of the room. (This picture is before the couch came into the room, but gives you a good idea how much desk we're talking about.)
As you can see, having the couch in the room with the desk really gave me no room. As the picture shows, the couch was literally butted up against the edge of the desk in order to give us any room at all.
Additionally, I was making the mistake of having the fireplace corner/television be the focal point of the room because I was intimidated by the diagonal wall. (I couldn't move the television, which is in place of the non-working fireplace insert, because this is where the grown-ups watch movies. Remember, we have no television at our house.)
Pulling the desk out of the room allowed us to put the two pieces of the sectional back together. We tucked them into the corner and brought the coffee table into position. We got rid of the rug I had needed to help create a seating area before. This is the view from behind the leather chair, as you walk in from the laundry room.
Then we still had tons of space to fill and had not yet created a conversation area, so we brought the leather chairs out of the dining room (weird, but we had no other place for them) and put them in the room as well. (Sorry for the bad light...the colors in the first "after" picture are closer to true...the throws are red and the pillows on the leather chairs are tan suede.) This is the view from the top of the steps.
We're really pleased with this room so far. What do you think? We'd like some different art on the wall above the couch, but aren't spending the money on it right now. Any ideas?