No. Get a fitted slip cover and move on.

its flowers, treat it like it belongs in a natural themed room. beiges and wood things. get a plant too, you'll like the whole living room more once you have a plant. great windows, cool space, sorry the couch is stressing you out, I lived with a plaid couch with recliners for years and tried to decorate a beachy house around it... its tough!

The photos tell next-to-nothing about the layout of the room - without a sketch, including dimensions and placement of all windows and doors, layout suggestions are meaningless.

As for what colors to use - assuming you like the sofa fabric - the most obvious approach is to pull colors from the fabric pattern, and there's plenty to choose from. However, I have to agree with @k & k colour - get a slipcover.

I really like the couch! And those floors and windows are lovely!!
I would put the couch on the wall closest to the windows so that the far wall can be used for a dining area (you can put the table flush against the wall so that it takes up less space). I'm envisioning a plush cream-colored rug under the couch, an thick gold-framed mirror above and a distressed/natural wood coffee table. Other accents should be kept neutral (white/cream), gold, or maybe light blue to pick up some of the colors from the couch pattern.

Inspiration: http://www.media.californiahomedesign.com/sites/all/files/styles/product_find_full/public/larkin-sofa-floral_0.jpg

I like the sofa where it is in the 2nd photo.

The couch will be a toughy. I sympathize! Like Sara.B. we had a plaid couch in our younger years that we got for free. The pattern was just hard to decorate with. A cheap slipcover idea I spotted on Flickr used dropcloths....

http://www.flickr.com/photos/51913475@N00/413766888/

and here's another that looks like a tutorial...

http://www.flickr.com/photos/annabelleadesigns/5982586314/

I've seen them at Walmart for about $15 a piece. Lots of fabric on the cheap. And they are really nice with furry friends, too.

I see blue grey and mustard yellow in the couch, two colors that should be fun to work with and fairly easy to find in textiles. I agree with the earlier post that a "natural" look would work well here. recycle a pallet to create a coffee table, add some big baskets and a big soft solid color rug. Maybe make some big floor pillows in mustard and blue-grey. Add big chunky candles and art. Will your couch fit in the bay window? You might be able to put a cover over the rad and use it like a sofa table behind the couch if it will fit in the bay, You bought the couch because you liked it, make it the star of the room.

I can't imagine any room/lighting where that sofa would look good. Another vote for a slipcover...one that really covers.

I say keep the floral couch, it's wonderful and quirky and unique. That being said, I'd suggest pulling colors (like fotogeek suggested), and stick with mostly solid fabrics for the rest of the room since the couch is such a bold statement. Mustards and blues would look swell. What do the 'feet' look like, you might update it by taking off the skirting if the legs are showable. Also a nice wall of artwork behind the couch would help tie it to the room. Hope you get lots of inspiration and help. Don't let the negative comments sway you, that couch is awesome!

Fire. Fire goes with this couch. Kidding. Sort of. Kudos to you if you like it, but I agree with Zazzu - really can't imagine anything that would make that couch look good. I vote slipcover.

A slipcover would go very well with that couch.

I would replace or reupholster, not slipcover the sofa, if your budget can handle it. There are lots of great fabrics available on-line for under $10 per yard and even more if you can budget a bit higher. As for what to do with your room, this would be a good place to start:
Top 10 Interior Decorating Mistakes and How to Avoid Them . Lots of tips from how to figure out how to arrange furniture, choose colors, etc.

I would do a bright jewel tone turquoise with that mustard yellow color in the flowers. But that's me.

A slipcover may be the easiest way out but if you want to have the pattern show, anything else that gets paired with the couch should probably be solid because the couch is loud enough. The pale blue from the pattern is a very nice tint, and maybe you could pull some of that gold tone into other pieces as well?

And if the couch is still too loud, how about a throw blanket draped over it? Not completely over it like a slip cover, but just enough to tone down the pattern without completely covering it up.

My advice is to sell this couch on Craigslist and get yourself to Jubilee Furniture out in Carol Stream (open Friday afternoon and Saturday only). It's a used furniture store and they have new inventory. The prices, though not as low as they used to be, are still pretty reasonable. Pick out a nice neutral couch and start looking for a rug you love - build your room around THAT instead.

http://jubileefurniture.blogspot.com/

(Oops I meant that they get new inventory in every week)

I think the only option is go full-on retro. Look up images of the living room from "Three's Company" and try to emulate it.

I'm on the slipcover side.

Yes on placement as in the second photo. Isolating the couch between the two doorways leaves you no place for side tables to put a drink on. Also, it will be hard to create other seating in a conversational grouping with that couch between two doorways.
I agree with the many posters above who advise you to start over with a different couch. It shouldn't be this hard -- when you have the right couch, it's hard to resist all the wonderful finds you spot that would look great with it. Give yourself the gift of having that experience. Get a different couch in a solid color and have fun!!!

If YOU like the sofa fabric, I suggest you check out Sarah's House season 4 master bedroom. I was totally skeptical of the print she selected as a "jumping off point" for the room, but the other (more modern) fabrics she chose made it work.
See it here:
http://designmaze-tim.blogspot.com/2011/11/sarahs-house-4-master-boy-bedroom.html

Whoever said to bring out the mustard and grey tones, I second that. A sisal-look rug would be nice. It looks like you are going greyish on the walls?

For the coffee table, I'd suggest something not woodtone. A glass/metal one would be great, but don't choose something with super-modern lines. Or if you like a very traditional look you can get something painted (or paint it yourself).

I would put the couch where you have it in the second picture and put a big brown reading chair in front of the window (like Ikea's Ektorp chair or their Ystad leather chair. Suggesting Ikea because you said your budget is limited).
Get a big low coffee table, something simple, like a Parsons style, in dark wood.
And to give it a little edge, get a rug in a bright color that coordinates with the couch - I'm thinking bright yellow or teal. Something fluffy, maybe even a shag.
Replace the lamp with a brass lamp.
I like the idea of a potted plant.
I would try to avoid any other patterns and stick with natural woods, browns, etc. for other furniture.
Talking about Ikea, they have some pretty bold patterns for some of their fabrics (Ektorp comes in a bright pink floral I think), their catalog might give you some ideas how to tie it all together.
For the bikes - how about putting a bookshelf in front of that wall in picture #3, leaving a gap between the shelf and the wall and then tucking the bikes behind it?

I say slipcover only so that no one accidentally sits on the dog. Seriously, how many readers noticed the dog?

If you plan on keeping it as is, I think you're going to need to think of painting the walls first to get the room started.

A bonfire.

The upholsterer had a sense of humor, placing the button smack in the middle of a flower.

@Aceyx...good one. I thought it was a cat.

Since you made the purchase, I think you should make the couch work. I like it better in the last picture near the windows where it goes really well with that yellow cabinet thing and the wood on that storage table. I think a large, oval shaped turquoise rug and a glass top coffee table or something white with curvy legs would pull the room together. Some interesting artwork behind the couch, maybe large scale or quirky enough to offset that pattern is also in need. The white walls are too harsh, maybe cream would warm everything up. Get some orange and turquoise/green pillows to throw on the couch. As for the bikes, I think it would be really interesting if you found a cool wall hanging or fabric or even wallpaper to go on that wall between the two doorways and hung your bikes on hooks on that wall.

Chalk this up as a lesson learned and move on to a more appropriate sofa.

I didn't mean to sound rude, above. I think you could calm down the busy sofa pattern by using the gray-blue and grey tones in there for cushions and accents -- maybe a large throw with a subtle check or herringbone pattern in blue and caramel-- and paint the walls caramel. In the chintz days, designers would bring in a stripe or a plaid fabric on a chair or ottoman to coordinate with a large floral repeat like your sofa upholstery.

That wall is too short for your sofa, though. Can it sit on the wall to its left?

+1 on all of HHRI's suggestions, except I think you should work in glass/chrome somewhere, perhaps in a classic Parson's style coffee table. Or in some lamps.

My design taste wanders more into curated eclectic, so that sofa is a dream find for me. I would use the sofa as a room divider. Slide it forward from where it is in the third photo and put your dining/kitchen table there. You'll still have room for a coffee table between the sofa and the window as well as a chair and ottoman near the window/radiator. You can line the remaining walls with bookcases and shelves for storage.

In terms of colours, I would keep the walls the same as they are and use accessories like a great rug and accent chair to bring out the ochre and/or blue in the fabric. Something like this could be a useful way to pull bike storage into the design of the room: http://etsy.me/PcmqIK

I think there's a lot of potential for the couch and the room. Have fun with it!

While I personally really hate that sofa, if you like it then I'd suggest painting the walls a very pale blue-gray that is related to but lighter than the blue-gray in the fabric. White trim that matches the particular white in the fabric. Mustard gold or white coffee table, ideally a Parson's but at least something low and about the width of two cushions. (The more simple and clean the lines, the more updated and not-museum-like the space will seem.) Plain colored chair/s in moss green, mustard, or white. Plain colored sofa pillow/s in teal or brighter orange, maybe one in white. (You could get TEXTURAL pillows, and it might be possible to find a stripe or other contrasting print in the EXACT same colors of the floral, but if it's off by much it could look terrible...)

I'd avoid using much brown in the room since that is going to feel very period and dowdy. A sisal rug might be ok since it's close to the color of the floor, but avoid dark browns. (I think white would be prettiest, but maybe not practical enough.) Use as much white and pretty, clear accent color as you can. Contemporary table lamps in any of the colors on simple end tables. Framed art, maybe pretty botanical prints to work with the fabric, matted in white and framed in gold. (Thrift stores, used furniture places, flea markets... A used furniture place near me has hotel/motel furnishings including mid sized framed art for $5 each now...)

Keep the couch on the wall beside the window. Find a funky wallpaper that has a similar colour as the background with the pattern in white. Nothing too busy though. Something like this Zee Wallpaper would make the couch look less outdated and more kitsch. I wouldn't hang a painting behind the couch, but a mirror or piece of metal artwork would work well. Buy a natural fiber carpet in a neutral tone. Go with a natural wood look for any tables but mix it up with glass or metal lamps.

As for the bikes, there are a lot of options for hanging bikes on the wall now. I would use the wall between the two doors.

How about playing with patterns? A checkered pillow, an olive rug (with a moroccan trellis pattern?), a wood parsons-style coffee table and also some paint on the walls? Greys or Olive tones...

@ACEYX totally didn't see the dog..but I do agree with going with the sofffft and pallle look on walls.thinking English Cottage..but modern touches...perhaps the soft pale grey/blue..very soft and light..on the walls as the jump off point and let it flow from there. Enjoy your new home~yea!!

I would put that big cabinet over by the window inbetween the two doors where the couch is.. Slipcover the couch and a chair or chairs in the same fabric. I would float the couch and chair or chairs in the room away from the walls , maybe put a little writing / computer spot by the window where that cabinet was. Take your time the paint will really help. Good luck. Give us a photo when you finish.

A migraine goes with that couch.

A match and some gasoline? Seriously, though, I vote for a slipcover.

Ha ha! I missed the dog! I was trying to look at that sofa for the absolute minimum amount of time : ) I don't mean to be mean... sorry. If you like the couch, keep it. But with the black and white floor and the wooden floor it's going to be tough. Please slipcover.

Well as far as a large coffee table for puzzles. I would buy a table top from Ikea and put wheels on the bottom. That way you have a place to do puzzles that slides under the couch. Leaving you to get a small coffee table or no coffee table. This looks like a fairly large room but if you add a piece that is too large its going to look tiny. And you will loose that airy-ness that it has too it. As far as the couch.....its a bit loud. So I would go with a few additions to the room that are "natural" to soften the whole room. i would also make my own very modern art for the wall behind the couch. Its going to be hard to try to match any one of the number of colors in it. Its not a very common style right now and it doesnt have any of the trending colors in it. I say modern-ish art or something because its pretty easy to make. I would not try to match the blue I see in it or the pink? in it that I think I can see. It will look very old lady. I think thats a brown on the leafs but thats a bit dark for the space. Perhaps a nice gold or mustard rug? Im not sure about rug color. I would have to see what else goes into the room to make a better judgement. Preferably a rug without a pattern though. The couch has more than enough pattern for the whole room. Also what is all that opposite of the couch? Where that stand of stuff is looks like a good place for an indoor bike rack. Maybe a few well selected end tables with storage for the stuff and ditch the cart/stand thingy? Or dont worry about art behind the couch. Get some wall shelves and run them up the wall. Then use it for storage and nick-nacks that pop. Then maybe add some other piece of furniture in a soild to anchor the room. It would have to be placed carefully near the couch but not so that it was in the way of the walking path to get through the room and so it didnt look like it was floating out in space. You might want to go with a color pallet of neutrals. And change out the lamp shade to something less bright white and more cream. The couch its self has great lines. The pattern just throws off the eye. I wish I could draw a few things out for you. Good Luck.

Another vote for gray and mustard. And less contrast between the sofa and the wall. But my main concern is using a coffee table for puzzle. Jigsaw puzzles? Wouldn't your back get achy from constant leaning over? I can't imagine a coffee table tall enough to prevent the leaning -- I'd be sitting on the floor in 30 seconds.

If you like the fabric, don't cover it - work with it. There are enough colors in it that you can coordinate other colors with it - it will look better in context, when it isn't the only fabric, pattern and color in the room. Start with the blue-grey in it (looks like you are don't that in the paint), then the gold and dusty coral, and lastly the greens. I say this because looking at it, the green stands out most to me, so first emphasize the other colors in your choices, as you already have a chunk of green in the room with it. If when looking at the actual couch, it doesn't mostly look green to you, but say, brownish, then bring in more greens before brownish colors. You don't want to add more more of the dominant color to the room, but have other fabrics use the minor colors in the couch as their main colors, and the main color in the couch as minor colors. Go darker with other colors - for a rug, since the couch has a white background, don't get one with a white background - just get the colors in the couch (or one color). Ditto with curtains and pillows and throws - no more white background (that is what I like least about this couch, and I think what makes it hard for you to accessorize it. Do the rug that goes with it next, and build from there.

Don't bother with a slipcover - if you don't like the couch enough, replace it. It won't look better with a slipcover. I'd replace - I don't like it. But something in you did - do you still like it? Something tells me you don't anymore - or you'd be running off finding a rug, a throw, pillows, curtains, etc. in colors that come from the couch instead of posting here. It is OK to change your mind about a purchase and decide you made a mistake, or changed since you bought it. Or maybe your space change did it. I bought a couch I loved, but it just didn't look right in my next apartment at all. Got a new one. Old one in another room now (I can 't yet bear to part with it.) Maybe you like the couch, but it doesn't work in this apartment. If so, can you lend it to a friend (I did with mine before I moved again and collected it) who will take care of it, if you plan to move in the not so distant future and may have use for it again?

Also, when I had such a living room with bay windows (two, actually), I learned this: you don't just have two walls for the couch. The couch may very well look better not on a wall. For example, in one, I had bookcases lining the wall opposite the windows, and the couch in front of the bookcases (with room for a walkway behind it to get to the books) facing toward the window. Next place, I put the couch in front of the windows, facing in - with room to walk behind to get to the windows to open, close and look out, and to tend the plants on small tables in front of the window and the trees in pots. Now, true, I had no walls to put the couches on in those living rooms, what with all the doors, windows, fireplaces and built-in bookshelves in one, but I learned a valuable lesson about checking out ALL couch placement options. I also learned, from a friend, to try couch placement on the diagonal as well. Good luck.

My mom has a couch with a print similar to this - she has light blue carpeting that it looks very good on. Now, you don't want to carpet this place - but I mention it to say that a rug in the right color CAN help a lot. And, if you can't find the right rug, go to a carpet place and get a remnant of carpet in the right shade (take a couch pillow with you to find the right shade) and have them bind the edges for you, it'll be the right shade (you'll have more to select from with carpet), and often quite cheap. You can also choose your dimensions - in this case, I'd go larger, to make sure the couch actually sits ON the rug...it will help to balance out the colors in the couch.

From a practical standpoint, a deciding factor is how much you paid for the couch and whether you purchased it new or used. If you don't have much invested in it, you may want to go with a neutral slip cover, as some others have suggested. If you bought it new and you want to get some use out of it, I'd go for it. I think the blue-gray color in the sofa would be a good, neutral color choice.

A sisal rug or a solid that picks up one of the colors in the sofa would be nice. At a used furniture store, you should be able to find some accent chairs that would work.

I am sorry you have received so many negative comments. It's just a sofa, for Heaven's sake. How many of us have bought furniture we loved, only to discover it wasn't the ideal piece? I once bought a pair of club chairs and a matching ottoman - new, with custom fabric that I loved in the store. It was a jungle-ly sort of print, big and bold. When the furniture came, I actually lay down on the floor and cried! I thought I had made a horrible mistake. Later, I bought some extra chair fabric and had throw pillows made for my green sofa. It tied it all together and I was once again happy with my purchase. I kept the chairs for several years and sold them to a consignment store. The owner raved over the "handsome" chairs and they sold the first day. So my "mistake" wasn't too bad. When you get your room together, that sofa may be the focal point.

Is that a kitty on the couch? I see a dog or a cat in the other room, but I think there may be a pet on the sofa, at the end.

Good luck with your apartment. I really love the windows. It looks like you have lovely light coming into the space.

the couch is like a garden or a forest , so keep your colours along those lines. colours like plums or terra cotta, burnt orange.... different shades of brown. changing the colour of the walls will help too

this is a helpful suggestion, not a joke/crack at your couch.
you know what else would help this couch, some new legs. It's a squishy looking couch (not a bad thing) and it's so low to the floor it looks a bit dumpy. Turn it over and figure out if/how the legs come off. Then go get some new ones and and screw them on. I would suggest stained wood not painted, and either a very simple "pole" shape (called round or tapered) or something curved (cabriole or decorated cabriole, in a wide width) to take advantage of the femininity of the fabric.

hmm, I left something out: make sure the legs are longer than the ones currently on the couch so it's lifted up more. it will also show off your sexy new legs a bit.

I like the couch by the window; I would suggest a light (maybe cream-colored) rug and a glass coffee table. I wouldn't choose a wooden coffee tabletop or a solid ottoman; I think something you couldn't see the floor/rug through would make the space feel too "heavy" and dark.

Slipcovers are fine if you're staging. In real life...they're a pain. I'd go with another color for the walls; they always say to pick up the least used color in a print, but I'd go for a soft gold. The couch really suits the room, IMO. As you are working with a budget, I would make the room pleasant and save up to either buy a new sofa or have it recovered. (I've thrown away enough money buying slipcovers to never recommend them to anyone.)