A different way to decorate a small living space and give the false impression of height and area in the room is to use overhead molding. Crown molding is a marvellous way to make a room more appealing. The eye goes up to the the top of ceiling and gives the optical illusion of height. Crown creating can be painted the same shade as the décor in the room, or you can use a regular wooden grain molding which is fantastic addition to any room.
A method to lighten a small living room and also give the a sense of spaciousness is to add small sconce light fixtures, which jump light off of the ceiling. The actual light goes up toward typically the ceiling. It gives a wonderful environment in the room, and since the attention goes upward, the room seems taller and it provides ambiance to the room.