Hi patlamb. So, I am going to be honest here. This loveseat feels too massive for the space. The dimensions might actually allow the piece to fit, but it FEELS visually massive which may overwhelm the room. I would look for something that has an exposed leg, is shallower, has a narrower arm and a T-cushion. All of these will help your selection feel more scale appropriate to this small space. It also occurs to me that this room should be able to accommodate a full sized sofa. Is there a reason why you are leaning toward a loveseat? Regarding layout: Sofa with it's back centered between the pair of windows. Larger chair near the stairway as you have the mission recliner. Another chair to the right of the sofa with a lamp table between the two. Consider wall mounting the TV in it's present location and adding a console beneath it for components. It would be great if you found a console that is open beneath, providing a spot to tuck an ottoman or pair of square benches for additional seating. The key to this space will be in selecting elements that are VISUALLY light. Think: delicate frames, exposed legs, reflective surfaces, clean lines and lighter tones. Use pattern sparingly. I look forward to your thoughts. Best Luck!