We decided to put the office in the living room because the condo only has two bedrooms (one for us, one for Lucy). Our computer doubles as a TV... and so far so good. Most of the shows we watch are online anyway, so it works out pretty well.
Desk from Pier One Outlet store: $200
Vase from Pier One Outlet store: $15
cute stem-y things from Z Gallery: $3 each (I want to get two more to fill it out a bit more)
Nils armchair from Ikea: $80 (and yes... we still need to buy the $10 chair cover :)