Hi Vijaya, you could use some panelling with interesting inlay or play around with colors once you decide your tv and home theater. I suggest you have ledge or some storage underneath where ur sub woofer and DVD players can be placed. Make sure they have ample power points. Remember to keep them ventilated as most of them tend to get heated. You could use the same ledge to place ur laptop on the extreme end and place cushions or puffins to double as extra sitting. The adjacent wall is a great place to convert into a library. If you have any chair in that area it may block the entrance. Cheers.

Empty the room. I like your carpet, that could be the starting point for colour choice. It's difficult to figure out the room but I think the rug should be pulled out to the centre of the room. Paint room a warm sand colour. I don't know if the TV can be moved,but you have to find a way to hide the wires. If the sofa can have its back to the doors it would take away the attention to the doors . I'll let you con cider this:-)

OK... but the wire wont be lower as it is fixed now. The wire in the pics below is the wall facing each other. They were leveled on equal height but the beam on one wall makes it seem a little above. But i think you guys are absolutely right that up and down lights wont look good there. I think you are right about down lights lessismoore. Would it look good if i go with two different lights on opposite walls??? it would look odd right.

I didn't realize it was a faux stone pattern. There is nothing you can do to hide the grid pattern I am afraid...However, as it is recessed in a niche, I am inspired by your windchime pattern to think of adding eyelet hooks on the top and bottom that align with the vertical grids and uplight them from behind...This idea but with less vertical rods, and then uplit to give an effect like the second picture...