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.

Perhaps a large round table might mean a rug is not at all necessary. It could be a metal tray table, or carved wood like Rebecca Mitchell Interiors illustrates. Ideas also to consider, using multiple tables can be found at http://www.houzz.com/multiple-coffee-tables. I also agree with comments above that some color is needed on the walls. You could then hang round mirrors, or an unusual curved shape like RMI shows above.

that is what i have added if you can see the pic above.. want some suggestions on partition that i can use between dining and sitting

Many people these days opt for puja room in guest bedrooms, due to limitation of other spaces. Since living room while entertaining guests there is alcohol consumption, non veg food, dancing, so it could be more disgraceful than a guest room. So, I guess that's fine. I am suggesting the bed on the west wall (the headrest on West Wall) so that you are facing the east (that's Vastu compliant). The bed goes where the wardrobe currrently is. The temple on the North wall with the Gods facing South or West wall with Gods facing east. Rest you could add a bench under the window for seating while enjoying the sunlight and a console on the South wall.