The thing to bear inmind is that you really don't need much room in a living room. A living room is for socializing, for gazing at the fire or for watching TV. Mostly, it is for conversation. You do not need space to do yoga in the living room. In fact, as long as you can walk around the coffee table, you're fine. (http://www.houzz.com/ideabooks/6408892/list/11-Design-Ideas-for-Splendid-Small-Living-Rooms)
You can pack a lot of style into 100 square feet. But whatever your style, making a small living room work is all about choosing a focus and arranging the right furniture in the right configuration.
If your room is two rooms in one, make sure to link them with decor but define them, for instance with a floor rug, and divide them if possible. by perhaps putting the sofa at right angles.
- A simple scheme
- Keep furniture small
- Light coloured furniture
- Low furniture enables the eye to see over the top, creating a feeling of space
- Built-in furniture
- Glass coffee table (unless you're like me and have a toddler visiting)
- Mirrors reflect light and make the room seem bigger
- Good storage
Channel 4: http://www.channel4.com/4homes/rooms/living-room/living-room-design-ideas/design-ideas-for-small-living-rooms
How Stuff Works is always a helpful site: http://tlc.howstuffworks.com/home/secrets-to-arranging-furniture-in-a-small-space.htm
Better homes and gardens (but beware, they'll keep trying to sign you up to their site): http://www.bhg.com/decorating/small-spaces/strategies/living-room-ideas/