Manvisudan...you might want to re-post your dilemma in the design dilemma category and you will get more help with your room. Not too many people look at this "other" category.

You're welcome! =) I think a shade of grey will be a great addition to the room. The red one in the photo doesn't really suit it. If you have any questions, feel free to ask! angelinavick@ymail.com

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.

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.