i'd start by floating the sofa to face the FP and move the loveseat to the window wall, adjust the rug the opposite direction and look to add some storage furniture for the toys, etc and eliminate the plastic bins. a shelving unit, low bookcase, desk or chest of drawers could set behind the sofa...offering some storage, a spot for a fab lamp, and will soften the look of the back of the sofa, making it look more inviting. i'd use the blue from the rug as your accent color....add more of it with simple, straight hanging curtain panels and some toss pillows [try blending variations of the blue and use patterns, stripes, textured fabrics and solids that all coordinate to add some nice dimension and layering]. add more large art and keep accessories simple and not too small...remove items from the mantle, they are distracting from a great element and nice piece of art. switch to drum shaped lamp shades and be wary of "matching" items [lamps] and accessories. keep us posted. :]

Use the blues and browns from the rug for great contrast in the drapes and pillows. To bring in the pattern that you asked about, be sure to compliment not compete with the rug. The brown and blue combo is popular, so it should be ok to find something in those colors [or in a solid] at JCP or le Target boutique! I would hide the kids toys in big wicker trunks for visual beauty. Add contrast at the top of your sofas by putting blue or brown throws on the diagonal. How about real, tall plants for atmosphere and a personal touch? The bones of the room are traditional, while the rug is casual. That's fine - just keep the drapes and pillows casual to bring the whole look together.

My own impulse is to go for the rust color in your rug for curtains and pillows. Some lamps that are more substantial would be worth a look.

Ok, I love that rug! I see lots of potential & inspiration in it. Since the rug has that pretty color of blue, go with that as your accent color. Use it for your curtains, but raise your curtain rod up to almost ceiling height and get curtains that are long enough to hit the floor. That will add lots of height to your room. Next, your throw pillows should incorporate all of the colors in your rug - blue, tan, rust, brown - and in lots of patterns and textures. Don't be afraid to mix patterns - just be sure the colors are close to the same. Your lamps can be silver, rust or blue. Check out thrift stores for some funky lamps that you like. If they aren't the right color - just spray paint them! They don't have to match each other either, but you could paint both blue, for example, and top them off with new white shades. Also, with a little one, an ottoman makes a great coffee table. No sharp edges for them to get hurt on!