You have any other furniture that you are using?

The rug is too small for the entire room. So, if you want to use the rug and nesting tables in the room, rotate the rug and put it "in" the bay nook. Put two accent chairs on the rug with the nesting tables between the chairs. Then, you can float a small sofa across from the chairs. Some tweaking may be in order, after we see all of your furnishings.

Thanks for the great suggestions so far. There are 2 sets of nesting tables. I have no other furniture that I am planning to use in this room so far. I am looking to buy some pieces for here so am open to all ideas. :-)

I really like Darzy's ideas

We are Elevation C with the Bay Window. The 'Library' is an office with a door. Two cats & two teenagers - whom hopefully won't use the room much. More traditional then anything. The purpose of the room would be a sitting room - no TV. We are a few houses down the street from the Lake so can see it from the side of the window. The paint in the Hall is Benjamin Moore Shaker Beige. I appreciate all and any advice.:-)

I like the idea of using 2 sofas facing each other parallel to the window and either to chairs or two ottomans under the window. You can use the nesting tables at the end of each sofa or one next to one sofa and the other between the chairs.
This will creative a great conversation area, and it looks very elegant. Since you will have a sofa against the wall and the second one will float you can use a sofa table so you do not see the back of the sofa so much.

I hope your room works out great and most important that you love the space that you create.