Living Room Makeovers - Before and After: This living room was suffering from a case of the boring beiges. Painting the walls in a vibrant color helped to make the sofa stand out. Colorful window treatments, chairs and accessories banished the blahs for good. More photos and details here.
It might make the most sense to "float" the sofa in the middle of the room and place your TV on the wall facing it. You can then use the space on the other side of the sofa for an office or dining area. Place a console behind the couch to use for storage to serve both zones.