You did not mention if this room has a closet. Back in the nineteen thirties, twin beds were often placed in closets, straight across, not like a Murphy bed, making a nice, cozy like cavelike space. If you can do this, and most closets are pretty big these days, you will save space. They do this on boats, too. Put some big built in drawers on rollers, underneath the bed, I think you can build these yourself or buy them at any hardware store. Next, paint the paneling in a light neutral shade, off white, cream, gray, or blue, as it will make the room appear bigger. Put some sconces in the bed area for lighting, you can even hang posters and pictures in there. This way you will have way more floor space. Get an entertainment center for tv, one that goes almost up to the celing for your audio equipment, video games, and any extra storage.Try to keep it in the same color as the walls, or a steel gray. Put a comfy chair on a cool rug, in any style you like, and maybe add some floor cushions for when friends visit. Get some stainless steel end tables and glass shelves. Think clean and modern, and then embellish anyway you like, nautical, retro fifties, high tech, haute hippie, you get the idea. Keep draperies plain and add box valances covered in interesting fabric. I would like to know the dimensions of the room. I hope this helps.
