First of all, I don't think that furniture is comfortable enough to sit and watch TV, so the TV should be remove from that room, the purple wall paper and the purple furniture is too much, you should consider another color for that wall and the furniture against the wall it doesn't look good. What is that room at the end is kind of dark and I cannot appreciate exactly what is the purpose of that room. I'm a firm believer in skylights, we have skylights in the laundry room, kitchen, living room and office, they make a big difference. (if you cannot have skylights (or tube lights) can lights are a great option. There are a lot of great ideas from everyone. I can't wait to see the after photos.

Usually when you get side panels you automatically have space on the sides. If you have a full depth cabinet on the top, you automatically have space at the top and in most cases you will have leave at least 1 inch of extra room for the back of the refrigerator, so there is always air circulation since everything is enclosed. In the 70's they use to make a small recessed space behind like Fred said, today you don't have to do that, most Ref have flat backs, recessed wiring, not to mention the supply for ice-maker also comes in a flush mounting kits for the wall... so pretty much everything is recessed and only space you need is for air circulation and 1" is more then enough. In addition, if you make recessed area now and you push ref to far you will never get your doors open so doing all that is a waste of time, in addition most manufacturers starting to make 30" side panels.

For the living room, the focus should be the balcony area. So flipping the couch to face the wall and not the dining table will help. Kind of like this pic. Even if you already have the sectional that is in the diagram, you should be able to flip it. In fact a sectional would probably work better than the couch in this pic. I also really don't like the style of this pic, but it showed what I meant, For the girls' room: No matter which bedroom you choose, you should maximize floor space so that they have the biggest play space possible in their room (as they get older you can add desks for school work and such). To get this space, I would give them bunk beds. This configuration gives them an open feel and more storage, essential for girls. You posted two different kitchen designs. This makes it hard to give you advice. I agree with other posts that your sink should be away from the wall. This allows you to have stuff to the left of you (drying dishes in my house), while you wash vegetables on the right of the sink. You need the same space on both sides of the stove, also. At least 24 inches on both sides is good. 36 is better, though. The first design has a nice little countertop space that adds a place for your daughters a space to sit a watch/ talk to you while you're in the kitchen. When they added this to the first design, you lost cabinets on the other wall. This is bad, as the space is already storage limited. Try making the rounded countertop bump out into the living space more. If you play with the shape, you could make it work without losing the cabinets on the other side. It doesn't have to be rectangular or a perfect circle. You can see how this one isn't confined to the floor plan of the kitchen. I think this is what you would need to do to make it the most functional.

I agree I need a customer wall to wall solution and maybe a full mirror for a small bathroom would look good. The challenge coming are those electrical points. Also someone guide as to what is the right width of the mirror I should put incase I just decide to put mirror over the sink? Is there enough space for framed mirror? The width of the countertop is 26 inch and the height from countertop to sconce is 52 inch. Thanks a lot