Reading corner - I love the wooden letters (from JoAnn's painted white) the framed book covers. IKEA spice racks painted white for the bookshelves and dot rugs from IKEA. I would love to do this in a corner of our family room!
Family Room - this would be a fun basement room for the kids to call their own. A place to keep their things, enjoys games and entertain their friends. I could see this below our basement windows in the rec room. Love the colors too.