Like Jharri31 said, ditch the coffee table. I'd opt for a matching ottoman and an end table instead. You can allways buy a little tray to set on the ottoman to hold magazines and remotes. I'm partial to plasmas, but they still aren't cheap. If you looking to save a little dough, go with a rear projection HDTV. They have DLP TVs now that don't take up alot of room and are cheaper than similar size plasmas. I'm not sure surround sound will be that good in such a small room. I go with a media pc or laptop instead and tie it into the tv so you can use it as a monitor. As far as air filtration goes, you might want to look into some type of smoke eater or an exhaust fan for that window. I'd stay away from carpet and go with hardwood if it's practical.