You can create division between two areas with your furniture arrangement. For example, your sofa could float in the room, facing the rest of your seating pieces. You can put a console table behind it which faces into the dining area. Without seeing pictures and knowing details like the traffic pathways through this space it's not very easy to help you further. What styles do you like? What colours? The possibilities are infinite :)

Instead of wood and glass installed permanently, consider two options. First, an open cube made of stained wood - 6' high x 6' wide for books, display, as a screen but not fixed. Ikea has expedit, but here is the nice version http://www.smartfurniture.com/products/LAX-Series-Bookshelf.html?st-t=Google_Campaign_PLA&vt-k=&vt-mt=&gclid=CMeu25rNuMICFYhefgodbHQAAw OR - use a sofa table behind a 7' sofa with its back to the dining area, and place tall buffet lamps with a standing sculpture between .. . divided, but flexible ..

Okay, do you have any theme or colours in mind. Like do you want a modern look, ethnic look or a mix of both. Which colour family earthy tones like reds and browns or Mediterranean like whites, blue and green.

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.