Only the Shadow Knows
Using Directed Lighting will add shadows - this is good ! Shadows block out areas and draw you more visually into the room. Directed lighting is exactly what it sounds like - light that you can direct where it lands. Examples are table lamps, and standing lamps with down cast shades which create the shadows. Be sure to use warm varieties of incandescent lighting instead of florescent or halogen.
Textures - Patterns - Colors
Textures: Throw blankets, plush pillows and soft textures will add immediate coziness to your space. Books in bookcases add texture, as do baskets. This would not be a good place for black chrome arm chairs or lots of mirrors. Your furniture finishes should be textured instead of sleek. Every style of furniture could meets these criteria.
Patterns: When using patterns in a room, choose those that fit your style, and keep in mind that the more patterns you use, the smaller the room will appear which helps to create "cozy" feeling. Throw rugs are a great way to add dimension to a room (and is also renter friendly).
Color - the darker the color, the more it draws you into a space. Whether itís wood furniture, pillow shams or on your walls.
It would be wise if you are working with a small room to apply these suggestions sparingly avoid creating a cramped atmosphere.