Oh - I posted too soon - I see the pictures now! I hate to say it but the furniture is very heavy for this room - any chance you could use it in another place? If not, I would bring the sofa forward by a
few feet and then position both chairs across from it by the same amount of distance from the
windows. Add a colorful flat weave rug, like a dhurrie, and the room will brighten. Behind the sofa or chairs you could add a console with baskets to store toys...

Hi I have no other room just a kitchen and dinet! But that sounds good were would u recommend to put the tv? That's only thing.
Yours thankfully

I would try reversing the sofa placement and have the TV hung on the back wall in the photo on the left.

What an awkward space! The door opens into the room where the hearth juts out, making it even narrower. In an ideal world I would want to make the fireplace smaller (a flat hole in the wall with no hearth) and change the door to open outwards. However I'm guessing they may not be options! You need the room to work in 2 ways, one as a cosy space for the adults in the evening and the other as a larger clear space for the kids during the day, a tough call!
I would consider dividing the room into 2 defined areas, one for kids and one for adults. The adult space should be at the window end and mean moving the TV to the other side of the fireplace. The sofa could go under the end window and 2 chairs either side. This will be a tight fit, would you consider buying a new L shaped one in a more compact design? This could sit by the radiator with a chair opposite. A rug and coffee table would further define this space and make it feel cosy.
At the other end, you could place your toy storage behind the door, (maybe invest in some more!) and then bean bags could give the kids some seating for watching TV and playing games. The TV being freestanding could swivel according to day/night position.
I hope that gives you some ideas, I'll try to find some photos to illustrate what I mean! Good Luck!

That sounds like what I'm looking for! We are actually getn rid if the fire place next month we are getn a stove put into the chimney breast instead. Do you mean put couch under window? And tv in apposite side of fireplace? Il attach better photos now
Yours thankfully

Hi, great news about stove, that will look good, especially if you can somehow narrow the hearth. Yes I did mean put the sofa under he window and TV on opposite side of fireplace, it looks like you have more room at the window end.

Now I feel foolish..thought that was one big sofa...sorry..already looks better!

The only major problem I have at moment is chair which is infront of fire is very close to fire which makes da space very narrow for traffic and the baby running and playing!!

The only other thing I can think of is putting the two chairs together at window area/move tv or hang it on wall...to keep the middle open so baby doesn't crash into chair and/or fireplace...or remove a chair for now...

I've put together an idea book with some examples of furniture and tips for small spaces. Basically, light furniture with legs (ie raised off the floor) gives the illusion of space. Curtains in the same colour range as the walls opens up the space. Multi purpose furniture such as an ottoman can be seating/table/storage all in one. Colour can be added back in with art work, vases, lamp shades, rugs etc. Hope that helps!
http://www.houzz.com/ideabooks/7071783/thumbs/Small-Living-Rooms

You have received some great advise. I do agree with Dytecture. Unless you are willing to start with new furniture.

Hi for the moment till I get new furniture as wat i have is new enough! how would the tv look above the fire! You wouldn have great view that's the only thing!

Didn't read the threads. Just a comment, I prefer a TV away from any windows if possible and believe TVs should be as close to the fireplace as much as possible in every room for everyone. ok people, I'm done for today, too much houzzing, but love it!