Thank you for your suggestions everyone. I am going to layer it with another solid rug and use it in the living room. My living room neds a bit of colour and I thought this would be perfect. Breaks my heart to think that I may have to put it elsewhere.

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.

Manvisudan, choosing a rug more along the lines of what I showed will afford you the opportunity to add some fun and interesting pillows to your silver ones. Its easy to change your pillows when you want a different look. The rug, on the other hand, is a bit more of an investment. Let me know if you would like pillow and art recommendations :)

I would get a coffee table similiar to the one in your other room. This area is small so I think a glass top for this room would be best. Try a round table with a pedestal. That would give you more leg room. Because all the cushions and the drapes have a pattern I think you should choose a rug with no pattern. A solid light gray would look nice. To contrast all of the smooth textures of the red upholstery and the dining chair's cushion, pick something with a high pile. Very soft! Change out the pillows on the sofas to a soft gray on gray pattern.