One more pic

I would probably put the sofa parallel to the fireplace and work the rest around that placement. You probably won't need to open the shutters very often as you will probably just adjust the louvers for the amount of light you want, so if you block them with a chair, it won't be too big of a problem.

I would get rid of the shutters. They are not all that attractive and even with the slats set to allow the most light in, the room will be considerably darker than it would be with other types of window coverings that could be raised and lowered or drawn to the sides. If you want your windows open for ventilation, the shutters will have to be either sticking out into the room or restricting the airflow if against the windows (even with the slats open).
As you already realize the shutters definitely interfere with furniture placement. I would rather have more options for moving my furniture around.

The problem with removing the shutters is that the casing and sliding windows aren't the most attractive, so you wouldn't want to accentuate them. We have the same large, low, sliding windows, and consulted with a designer. Our best option was to cover them with white shutters. We've had a long sofa in front of them for several years, but we just rearranged and placed two armchairs with a round table and lamp in front of them. Looks much better.

I also vote for removing the shutters.
It would be such a pain to deal with those... both for furniture placement AND for ventilation.

Hmm...removing the shutters might be a good idea. I kind of liked them in person, but it wasn't until I was looking at these pictures that I realized that the middle 2 don't open all the way!

Also, we do have to get all the windows replaced soonish (probably within the first few months of owning the house). Our inspector tried to open one upstairs (in our 3-year-old's future bedroom!), and it almost fell on him. Apparantly the latch is the only thing holding it in place. Lovely.

But, hopefully we can get more attractive windows (assuming costs aren't sky-high), so that should help too.

Fun2BHere - When you say the sofa parallel to the fireplace, do you mean floating, or up against the chair railing?

Thanks everyone!

Yes, I'd get rid of the shutters, and replace them with soft Roman shades hung at the ceiling, just covering the side trim. Shades won't intrude into the room, and also won't cut off the natural light (80% of which comes through the top 20% of the glass - have I said that enough times already??).

They'd also raise the windows visually to the height of the bookcase, and remove the long horizontal line created by their top trim. That line reinforces the long dimension of the room too much, and makes the ceiling seem lower.

As to arrangement, I wouldn't cut the room with a crosswise sofa. I think it's not big enough.

I'd put the sofa opposite the window, set your generous comfortable reading chair and an ottoman catty-cornered in front of the bookcase, and put a pair of lightweight but comfortable chairs on either side of a slender writing desk or console table along the wall below the railing with one or two lamps.

Although I don't usually advise it, In your case I'd mount the television over the firebox.

Alternatively, you could put the television arrangement against the wall under the railing, and put a second, smaller chair at the near side of the window, angled in to balance the reading chair. Then you could put a console table with a couple of small upholstered stools under it underneath the window between them.

I like both Bronwynsmom's suggestions, starting with the sofa against the left wall. It's a nicely sized and proportioned room for its use, and after all these years I've come to believe that means you're halfway to goal before you even start. It's going to feel good.

Another vote for getting rid of shutters. Then revisit the decor plan without them.

The couple clients I had who did lots of shutters (their choice) never open the shutters, they only move the louvers.

I didn't find the houses particularly dark if the louvers were directed to allow light in.

I think removing them depends on what you need there for light control or privacy, what you need for view modulation, etc.

I'll bet the previous owner installed this sort that do not fold up because they never opened them. From what I can tell the view doesn't look like it's anything interesting which may be why they chose them. That's not meant to be insulting. Most people's views are kinda ordinary if it's a yard and a fence.

I like shutters for their looks and utility, but these can't be opened, it looks like the window are onto their own new yard, and there is definitely a lovely view begging to be created out there.

I'd remove the shutters, and beef up the casings around the window with trim. I'd also paint all the trim (esp the blue).

The arrangement is similar to my living room - we have a sectional with one side under / in front of 3 windows, and the other side facing the fireplace. It works great for us. I'm including a pic so you can see how the living room looks. Our TV is on the wall that you can't see, but you could position yours on the hearth next to the fireplace perhaps.

With regard to my original comment, I would float the sofa from the wall on the left, adding a sofa table behind it for display and lamps. You would end up with an open pathway from the door on the left along the wall with the railing.

Oooh....I really like your room Leightx. That's pretty similar to what I want with the fireplace and bookcases on either end. Unfortunately there are several more pressing projects to be done first, so I'll be working with what I have for a while.

I ran the idea of taking off the shutters by DH. At first he was against it, but when I pointed out that they don't open flat, he's open to it. I'm definitely leaning towards that, with a furniture setup similar to Leightx's.

Now to figure out paint colors! :)

I notice that Leightx's room essentially has louvers over the windows from venetian blinds which would be very similar to leaving the shutters in place.

I was looking at hooked on houses and came across this listing that has a living room that reminded me of yours. You'll have to go to the listing and click to see more pictures and pic #2 is what reminded me of yours. Although looks like there is a bay window, but no bay for the floor.

Here is a link that might be useful: Listing with similar living room

Love your room leightx. How far is the sectional from those windows? I think that would really work for TexasJen.

Lyfia - I really like the conversation area they have set up in that listing.

Unfortunately, in reality, this is going to be the tv room. We only have 1 tv, and it's definitely going in here. So the furniture will need to be more arranged towards that.

Side note - what's "2.1 baths" mean (on that listing)?

The couch in my pic is butted right up against the window sills! In fact, we have to pull it away so the curtains hang straight.

We just sold our house (which is the reason I have these nice pictures - this is from our virtual tour), but if we were staying I would have trimmed out the windows.

We had the blinds because that room was also our "media room" (you can see the projector - the screen is across). But they do keep it darker than I would prefer.