If you have a floorplan that would be very helpful. Congrats!

I don't see a problem with either solution, but it would be really helpful to get floorplans with questions like these.

Nice problem to have ;)
I would start by imagining how you will use each space, I mean every corner of every big room--even sketching it out. Account for what pieces you already have, then fill in the blanks with your needs. (For example, have a great sofa, need a console table, etc.).
I think you are well on your way: I see no reason not to put the dining room where you think you will use it. I also don't like the idea of the dining room just inside the door. That space could be a sort of adjunct to the living room--lounge-y seating, play area, wall of shelves displaying a collection, etc.
I bet there will be great flea markets and the like in Houston--start looking for that light fixture replacement pronto.
I see no need to hide a tv--it is the placement of the tv (i.e., not as a focal point) that matters.

Ditto above, it's hard to help without a floorplan.

Coming from a fellow Texan (Dallas), no matter how ugly you think ceiling fans are, be wary of taking any down and replacing them with fanless fixtures. Ceiling fans are a staple in Texas for a simple reason- they help with cooling costs. Texas summers are brutal and ceiling fans in the bedrooms/main living area will let you set your thermostat a few degrees higher and will have an impact on your cooling bills. That, and be sure to take a good look at your attic insulation. Having new insulation blown in my attic brought my electric bill down on my 1968 single story 1800sqft house from $350 to $120 in June-Sept months.

One final tip- watch your body when getting into the car during the summer. Seatbelts, steering wheels, consoles all get hot enough to burn you if you arent paying attention.

Good luck with your move!

Tried to draw a floor plan from your description, but not sure its accurate.

Is there an eating area in your kitchen? If its big enough you may not really need a dining room. But if you do want a dining room, or entertain often, you'll want it as close to the kitchen as possible - and I think that means the room where the fireplace is should be your dining room. I'd guess the previous owners put their dining room out by the front door because they wanted the fireplace in the den?

Looks to me like the only thing that's making the area to the left of the front door a "dining" area is that light fixture. Take that away and its just a part of the living room. It looks like a biggish living room so you'll want to break it up into sitting areas with groups of furniture anchored with area rugs. The floor is beautiful but it might need some colour in the rooms and some rugs to make it more cozy.

What's that green room with the stripe to the left as you come in the front door?

Floor plan, please ... ?

I agree about the ceiling fan. There are nicer ones out there. My husband lived in Dallas for a year or so. He knew it was time to leave when the speedometer needle in his car melted from the heat.

We need a floor plan!

As a native Houstonian who has spent the last 17 years living in Chicago - congrats and remember - it's not the heat, it's the humidity!!

Not only does Houston have a plethora of home design stores at all price ranges, there's easy parking for the most part. My fave store is Kuhl-Linscomb in the Upper Kirby area, if you are into modern at all, check it out.

FWIW, if you decide to do any remodeling down the road, you'll find that the prices are much less than a bid for comparable work done in Chicago.

This is indeed a fortunate 'problem' to have...but I completely sympathize. I once rented an apt in MA which had a HUGE living room, and it never felt cozy and I was similarly stymied. Never really solved the problem.

Suggestions (barring floor plans as others have mentioned):
(1) use color to define space (walls) - maybe create a more intimate seating area (den) by a different color than the rest of the room. You ARE going to paint the walls, right? ;)

(2) use furniture (bookshelves open on both sides), console table, rugs, etc. to use as visual dividers, helping the 'eye' go where you want it go. Make sure you group furniture in a way conducive to the activities you want (conversation in den/living room) and don't forget traffic flow - visual flow.

(2) are you keeping the floor tiles that way (for now?) A little dated look, but understandable if you want to save a major renovation for down the road...

I love that you're already bold enough to consider using the rooms for different purposes than the 'standard' ways...Think about usage: how often are you going to entertain dinner guests vs. hanging out in the living room etc. Oftentimes people just do things the way they grew up (decor/usage-wise), and it isn't relevant to how their lives REALLY are lived! Good luck! Can't wait to see before and after!

I live in a hot climate too, and floor tiles are GREAT in warm weather, plus easy to maintain.

Do some throw rugs if you don't want to see THAT much tile.

Maybe the little area to the right of the entry can be a reading area - line the right wall with bookcases and have a table there. You can put more chairs around it if you have guests and turn it into a "dining room". When your daughter gets older, it could be a cool place to do homework.

That wall you see when you walk in is a great place to hang some interesting and BIG art.

Meant to say - though you have a lot of room, don't overfill it. I think that's the main thing wrong with a lot of houses today... furniture in every open space and corner.

My house is about the same size and I want to chuck some more stuff. There is nothing wrong with a blank wall in a room to let your eyes rest or keeping a wall clear of "stuff" against it.

Use the entry as a grand foyer. Put a big round table in the middle, with some slipper chairs against the wall. It makes a grand statement when people walk in, but you can always pull up the chairs to play cards or work at the table.

Elle Decor has some other great ideas for using a large entry space without having it be just a pass-through and repository for bikes.

http://ths.gardenweb.com/forums/load/decor/gal0222253725206.html

Congratulations on the house! You get a lot of space for your money in Texas, no?

Sounds like you know what you want to do with the den -- a dining and hangout area by the kitchen will be great. That's where people gravitate during parties anyway.

I'd suggest using tall bookshelves or those vintage room dividers (with tension poles) to carve out separate spaces in that oddly shaped "great room." You could either put one directly ahead of the front door where the tile pattern changes to diagonal or partition off what is now the formal dining space on the right. Since the room is so big, you'll need to set up smaller conversation areas. But you may have other options -- can't really say without the floor plan. (When I bought my house, a floor plan came with several documents -- the home inspection report, appraisal and I think the land survey. Check your papers and see if you can scan it.)

Welcome to Houston and congrats on the new pad. My husband and I moved here 3 years ago from NYC and have been enjoying the cheaper cost of living and more space for our 4 and 2 year olds. We live near the Menil Museum, and I recommend checking out this area for good finds on mid-century furniture, if that's your taste. Arriving at area thrift stores like Blue Bird Circle Shop, The Guild resale shop, and others in the early morning before the dealers do, can yield a LOT of great pieces at good prices - we practically furnished our entire 2200 sq ft 1930s house this way (we had almost nothing coming from a tiny 1 bedroom in NYC.)

I concur with the others here that a floorplan (even a sketch you scan in) of your space would be really helpful.

Also, I agree with grngodes, DO NOT get rid of ceiling fans unless you are replacing them with better ceiling fans - they make a huge and money-saving difference, no matter how hideous they are.

Just throwing in another welcome from Houston! I second both suggestions for the attic insultation and watching out when you get in the car during the summer! The upside to all the heat and summer electric bills is the winter with really low heating costs and rarely even a need for jackets! Good luck!

Just one quick word about ceiling fan dilemmas. My husband and I had the most hideous fan/light fixture in the WORLD, but Chicago has the same issue as Texas where unless you have central air, you really need the fan. SO, we basically unattached the light fixture part and unscrewed the fan blades. We spray painted all the metal parts silver to look like stainless steel, and we painted the rest of the fan white - this created a modern-looking fixture from what once used to look very granny-like! Then (and I'm not sure I'd recommend this without someone who knows about wiring and such), with the help of a very handy friend, we attached an ikea pendant fixture (that has a metal rod, not a flexible cord) to the existing light fixture connection, reattached the wires in the right places, and voila - instant very cool light fixture AND fan.

I think that using the den as a dining area sounds like a lovely idea! I like dining areas that are cozy and close to the kitchen, and it sounds like that's your preference too. A dining area in the front will definitely have a formal feel.

Also, that hideous light isn't even a ceiling fan! So I say, replace it & replace it with a lovely, contemporary fan. I also like the idea of using that section of your great room as a foyer.