I need ideas for our new living room, we have a den downstairs so this will be a "formal" living room.
The room is long, with a wall of windows on the right side. I think the dimensions are 16x 20

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A room that large can handle multiple seating areas. If the TV will be in the den, then maybe a bookcase in the alcove could be nice to make this the reading and entertaining room. Maybe even a game/homework table could be nice.
I really like this one from your ideabook --
Do you have any furniture for the room now or are you starting from scratch?
Lyvonne
www.essentialsinside.com
But this is quite nice. I don't think the yellow wall color does anything for it, and would change that first before doing anything to the fireplace. It is old enough to be considered a modern classic or retro.
I would consider replacing the hearth if anything to something that either blends in or in black. It will be tricky to get the color harmony right--I would be there on site to make sure it works, because if it is wrong it will stick out like a sore thumb. I do like raised hearths--easier to see the fire and a nice place to sit.
Drapery panels and woven natural blinds for your windows would look good.
Since the room is long, I would put an L sectional on the large wall, and parallel to the fireplace, with a farm table behind (right up against) the section parallel to fireplace. A couple of upholstered chairs on the open side of the farm table, provide extra seating, for use as a desk or meals, or buffet.
I suggest bottom up roller shades, so you get light, and simplify the look of the windows. Depending on the configuration of the windows, which is not visible in the photo, tailored drapery panels could soften them up.
Natural linen upholstery would be beautiful, with no worry of fading from the sun exposure. Coffee upholstery also looks beautiful with grey.
The challenges in this room are nothing but opportunity. A pearl of a room, waiting to happen.
http://www.blindsdirectcanada.com/blinds-toronto/woven-wood-shades.html
The room dimension are wonderful and should allow for flexible seating. I would love to see the floors a mahogany color.