We can't be specific without pictures of the dining room, but I recommend you look at http://www.houzz.com/decorating-dining-room-walls. You'll find a huge number of examples. Most are in rather grand houses, but many can be beautifully reinterpreted for pretty well any budget.

Let your wooden beam be as it is. put your Led lights in the other direction ( two on each side in one rectangle , so the total will be 16 units of say 10 watt each Led.), as to balance the horizontal and vertical shape. Don't put anything on the wooden beam to retain its the beauty.

Hello Vineetha, God is everywhere ! If you are going to use the room as a study room then you may very well keep the Pooja room in the same room. Its will be your sacred corner and hope it will bring peace, prosperity and knowledge to the family. That room is already very small in fact at 3200*2300 it is smaller than your kitchen ?Trimming a section from the smallest room to create Pooja room defies our understanding. If you are keen on Vastu- Yes, it is better to have square/rectangle rooms. North east corners are ideal for Pooja and Study. Thanks, Nitin Cornerstone Designs Bangalore.

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