This arrangement works much better, but some adjustments are needed to make it work. First, the fireplace grouping needs to be tightened. It crowds the dining area and you need a passageway behind the couch. Turn the rug lengthwise, parallel to the fireplace. Pull the large couch about 2 1/2 feet closer to the fireplace, and place the two chairs and loveseat on the ends of the rug, and pull them closer together. This will give you a more intimate conversation area, and not impose on the other areas of the room. Remove that floor lamp from behind the couch. If you need the light in that area, put it by the fireplace. Also, the stereo system on the mantel needs to find another home. Maybe it can go IN the fireplace instead. At the other end of the room, I think the arrangement would look better if the seating were rotated 90 degrees. Keep the rug and coffee table in its current configuration, place the sofa either facing the window or with its back to the window, and put the two chairs opposite it. Finally, the dining area. Now that you've moved the big leather chairs, you should have enough room. Your rug is too small. It should be big enough to give you at least a 2 ft. border all the way around when the chairs are pushed in. And it's a really beautiful table; please uncover it. I can't see what kind of lighting that area has. It really needs a pendant or chandelier hanging directly over the table.

I wouldn't put any water under there because of potential mould issues (in fact, there looks like there's a bit of mould already -- is there?). You could tile the bottom of it and put a strip of LED lights under the glass. What did you have in mind when you initially thought of the idea?

A Cuckoo clock!!! We have had a cuckoo clock back home forever with really great travel memories.

I am assuming you haven't finalised your wall colours and colours of any other fixed elements. In case you have finalised your color scheme you would need to see which of these colours blend well or complement with that scheme. Assuming none of this info is available, then you could look at the neutrals which go with all colours. The white tile and the 2 colours at the end would be preferable. If you want color on the floor as well as drama, you can choose from the 2nd options from both sides or even the 1st from left.