Well, I am trying to follow John and Sherry's advice, but on a budget. Instead of investing the time and money into built-in's, I moved our two black ladder bookcases that used to be on the wall behind the couch to the wall flanking the fireplace. I had previously painted the fireplace brick white and the brass insert black. I added some Ikea baskets to the shelves and am in the process of getting rid of the DVD racks. We NEVER watch the DVD's anyway. It's only DVR and Netflix for us these days! I moved the Pottery Barn cork board to the laundry room and found a new home for the blue chair. I also am going to down-size the Flor tile rug, since a certain little puppy likes to make messes when we are gone.
Here are a couple "before" shots. The one on the top shows the previous orientation of the ladder shelves, along with the new couch and Flor tile rug. The bottom one shows the old brick fireplace, DVD racks, and baker's rack tv cabinet.
I'm dying to show you all the after photos, but I am not done yet. I need a couple more weeks to finish up the final touches. You'll just have to wait in anticipation until then! :)