You have all the reasons to redo the house, its very lifeless and looks worn out. I feel creating a separation will terminate the spaciousness of the room. Adding colours will surely help, Since you have a tan color sofa,I suggest grey, white or light blue color on one of the walls. Add some art works of the color you chose for the wall. This room needs some fillers like , books, throws, candle stands tall and lean. YES DON FORGET 1. Mount the tv on the wall make some space on the floor and Fix a large size mirror ( Wooden Frame if you can afford).

If you were to choose a rug like the one iamjudy posted, you could bring a green into the room too. Maybe green pillows or chairs or drapes. Red and beige are beautiful colors to build on. Give us an idea of your favorite colors! :)))

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that is what i have added if you can see the pic above.. want some suggestions on partition that i can use between dining and sitting