If you can install a floor outlet, a lamp could also be used on the sofa table. Otherwise, you might add a sconce to the wall to the left of the front door. These can hold games and provide additional seating for a crowd. Finish the living room off with a bookcase on the wall opposite the front door. Choosing a style with an gled end pieces will make for a more interesting and visible display area and be less intrusive in the traffic zone.
Lighting is probably best accomplished with recessed ceiling lights throughout the room.
For the dining room, choose an oval or rectangular pine table with six or eight chairs. Buy one that can hold up to family activities, such as board games, as well as meals. This ensures that the room will be used for more than holiday dinners. A sideboard or china cabinet can go on the wall opposite the window. Place large art on the unbroken wall.