After 2 hours of cleaning and rearranging here is what I finally came up with... The perfect combination of play space and entertaining area.

This is facing the front door and hallway.	Facing the opposite corner toward the front.	Closer view of "pirates cove" with hideaway behind futon.	On the other side of the fireplace.	Heading toward the hall and kitchen (they have a play kitchen in the hall there too.