Firstly...are you sure they are jarrah and not som other more exotic timber? If you are fortunate enough to have a genuine 1932 built cottage I say "Don't Do it!" Just look at the beautiful timber in that floor! It would be sinful to paint it. I have a 1924 cottage with beautiful hoop pine floorboards all from the day it was built. My suggestion is to have the boards sanded and polished. I would not even dare go near them with polyurethane. I have turned back the clock and used the methods of the period of the house...a mix of pale boiled linseed oil and kero. Put it on with a mop or a deck mop or a wool mop leave it soak in. Re-do and leave it soak in,,,( you won't get patches...the floors will just soak it up.) Third coat, add a bit of turps to the mix as a white ant deterrent. Then, when the floors look like they've soaked up enough, get a big old fashioned string mop...if you can find one...or use a deck scrubber and old towels...or even a wad of new ones...100% cotton...its worth it, and rub off as much of the surplus as possible...wear sox so you will notice when the sox do not get oil stained anymore. First go is a long process but you will be really pleased when the floors have had several "drinks". After that you could get just an ordinary floor varnish or oil or just a sealant. Some of the modern wood treatments are really good. Then, every so often do the boards over with your "Oil Mop". You will never find timber like that again and, in my experience, it adds to the value of the house big time. Do what you like to any gyprock and plastered walls but PLEASE love your floorboards and any natural timber...especially from that era. I've been in this old cottage for 32 years. Everyone wants to know where I sourced the "new" floorboards", and who did I get to make my silky oak windows! Hope that helps.

Definitely glass and stainless steel for the TV unit, some round glass and stainless side tables rather than a coffee table in the middle and then invest in some colourful non-stripey cushions! The floor will look fab as a feature in the room but in winter it may need the warm feel of a plain coloured shaggy rug in front of your lounge.

Go with pine, either some recycled Baltic preferably or the newer one. If it looks 'orange' it may be Cypress Pine. This, if refinished properly looks like a light honey colour. It looks superb if done correctly. Refinishing it all with an oil (we used some European manufactured oil) rather than polyurethane. Poly looks good initially but is difficult to touch up if needed where as the repair using oil can be hidden easier. The poly also essentially 'glues' the boards together rather than allowing some movement. Spotted Gum is very nice indeed, as is Iron Bark but the difference of red brown to the lighter pine will be too much. The two different Pines will be ok.

I'm always surprised whenever I read discussion threads on the pros/cons of timber vs engineered or timber-look products is that I seem to be the only one who cares about the sound, not just the aesthetics. I grew up in very old houses and for me, that sound as you walk along a real timber floor is majestic and cannot be replicated by other products that to, seem to all sound like fingernails on a black board in comparison (okay not really, but it evokes the same reaction in me as does walking on lino). So, for that awesome sound of "real" timber and for longevity's sake, authenticity's sake, and all the reasons above I say option 2. Of course, budget is also important and I totally understand the width argument too.