Google: thermal insulation. I myself did thermal foil and drywall on the interior walls and rockwool in the ceilings and floors, but that's in a renovation of an old house with 15cms thick concrete single layer exterior walls. Some homework will give you more knowledge on the choices suitable for your home and climate. Ask your builder too.

the back wall panels look like ikea besta doors. the hanging cabinet could also be besta boxes, but with customized doors. the console in front of it, you could get a similar look by using a malm console table and cutting it to height. from there you'd want to use a couple of besta cabinets to create the closed off storage. the low bench could be made with plywood and then stained or painted to match the finish of the malm/besta combo you choose. besta cabinets :: http://www.ikea.com/us/en/catalog/categories/departments/living_room/11794/ malm console table :: http://www.ikea.com/us/en/catalog/products/80196480/

I dunno, do you like this (from our recently remodeled livingroom w/open entry area? Like Kah says, the easiest place to start is from color -- at least that's what my designer wife did first.

I think we scared away shilpasharda...I too think the dampness must be dealt with first. No reason to apply new stuff if it is going to be infected with mould, peel off and cause health concerns. Fix the problem not the symptom.