Rowe Furniture has very clean line sofas that I think would be an appropriate scale for this room. LOVE the red feature wall. You do need to bring the red into the room but knowing how you want the room to feel can help determine a color palette. If you want the room to have energy and "pop", try a split-complementary or triadic color scheme. If you want it to be more relaxed and harmonious, I would suggest an analogous color scheme.

There is contrast between the traditional furniture and the focal point of the floor which pops, draws attention. I would recover the sofas in cream colored soft fabric - suede. I would leave the curtains grey, and put down a large neutral area rug. The edges of the room would show the pattern of the floor. I would color the wall and add texture to it, but not too dark as the room will appear smaller. Add a picture and put a nice plant holder, large vase in the left corner of the room - an oriental-style vase. Or, a cream-stripe fabric on the sofas. You could go soft or bold in this room - depending on your taste.

I think the yellow and grey might bring out the gold-ish-ness of the couch.. I'd try to go with more blue colors.. Maybe some navy pillows and a rug with the blue in it as well. The curtains, that ying-yang rug, and the lilac rug just gotta go.. They're dwarfing all the sophistication this room will be able to have with that tile floor and those big beautiful windows. I love the dining room chairs!

I think you should stay with a simple pattern for draperies. Possibly a pattern incorporating the white trim and warm yellow walls. This would be soft and understated and something that you wouldn't get tired of easily. Other colors could be introduced with accessories.