Design Trouble

Good afternoon...this is Kyle again...I don't post often, but I have a problem and I am hopeful that the readers (Erin, mom(s), Sean?....maybe Miranda? Rebecca?) can help. This is not a REAL problem, but a design problem.

Our main floor is huge so we separated our living space into a dining room and living room (or family room...I'm really not sure what the difference is). These spaces are separated by the fireplace which creates a design challenge. Now, if I had the budget to allow two teams of hopeful HGTV hosts to attack this problem, that would be great, but I only have you. What should we do? What should we buy? How should we arrange?


Please excuse the poor quality of the following cell phone pictures.

I am open to buying new furniture, but I am not ok with replacing the entertainment center (I sunk 20 hours of my life into assembling this IKEA masterpiece).

As you can see, the main problem is functional seating that flows.  I hate myself for typing that, but I would hate myself more if I were to continue to live with an angled couch.

Any idea is acceptable, but a complete design with manufacturer part numbers, prices, and URLs (for ease of ordering) is preferred.  Measurements available upon request...measurements of the room that is.  Katy and I do not make a habit of publishing any other measurements.

Thanks!