For such a small room, you need to be ultra clear about goals and priorities, e.g. * Seating for 3 people * Reading light useable by 2 people * Don't obstruct 2 windows and 2 doors * Storage for 500 books * CD player and 2 speakers * Storage for 300 CDs * TV viewable by all 3 people etc. Wall storage is usually a great idea but in such a tiny living room, every item must be carefully designed, sized and placed for maximum efficiency.

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.

can u provide with site pics

You can find them in IKEA store