I would be inclined to go with an unobtrusive light since it's the living room and anything too dramatic or a hanging pendant may interfere with your peripheral vision (or otherwise be an annoyance) when you're watching TV, etc. Also, being so near the sliding door, the wind may cause a hanging pendant to swing quite a bit which will cause the lighting to be constantly shifting and changing which I would personally find annoying. I'd go with something simple and subtle, but look at getting a tall standing lamp for the corner near the sofa (or possibly at the other end of the floating TV cabinet). In terms of warming up the apartment, I think you need something on the bare walls. A smaller picture above the floating TV cabinet will help to take the focus off your TV. A larger art work behind the sofa will also help to add some colour and personality, especially if it picks up some hues from your sofa. If you don't like the little Buddha statue, I would look at adding one or two other items that you do like (perhaps picking up colours from the wall art) and making a little vignette. A couple of colourful cushions and a storage solution for the wires, games console, etc on the floor would also help to bring everything together. Something as simple as a woven basket under the floating TV cabinet might help to keep the games console, etc in place unless it is in use.

Something like this beautiful Oak coffee table would be a better contrast to your rug without looking too heavy.www.urbanointeriors.co.nz

what a lovely room which needs to look the way that makes you happy but you may find that the shutters also get in the way when opened..i wonder how venetians fixed inside the window reveals and directly to the doors would suit? Sheers are gorgeous but i agree the curtain pole doesn't look right: the sheer curtain tops should cover the pole (depending on the track this may only need a different hook to hold the pleats up higher) and as you need something that can be pushed completely out of the way a different pole with proper drawstrings with the curtains tops covering the poles may be the answer: a chat with a specialist who does shutters as well curtains (Spotlight?) should help but i hope you keep the sheers

Thanks Jen Osborne!! Will have to check out this photo shop thing!! Many thanks for everyones input!! My main dilemma, which I should have explained before, is that this area of the house was actually added on im guessing about 20 years after the main home. So the main home is about 50's style architecture and this bit is retro 70's . The old part of the house has alot of beautiful ceiling roses, cornice, and chandeliers. I want to try and blend the two a little. I am thinking I might change the walls back to white and do the french door black. I am hoping to decorate around the mustard yellow window, by bringing that colour into the room via a rug etc. Please see photos added of other parts of the house to show the style. Im also thinking I will remove the cowhide cushions and see what it looks like.