Easy St Update - Living Room and the Fireplace

Here is what the living looked like before:

I have removed the wood paneling, retaped and mudded the drywall that was behind.  This should brighten things up.

This fireplace is 8' by 6' and is located right in the middle of the kitchen and living room.  I have to do something about this.  I have an idea and will post the solution as soon as possible.