We bought our couch and matching chair at Rooms To Go and had a good experience with them. For the money, the furniture is good quality.
I've also ordered bedroom furniture from World Market and have been really impressed. The stuff is inexpensive and they use real wood, which I feel like is rare this day in age.
For what it's worth, I've heard Pottery Barn's quality for furniture is really bad, especially if you're going to pay that much for it. And Pottery Barn, the parent company, owns West Elm and Restoration Hardware, so you can probably expect similar quality furniture from them.
I also second the idea of going to vintage/antique/thrift stores. They often have good pieces that are solid and well-made, but just in need of reupholstering. I've also heard that Habitat for Humanity sometimes has furniture, so you may want to look there as well.
I got my living room furniture at this small online store. The selection of products are great and there is a wide selection of colors. My husband and I could not decide on a couch, so that was a bit of a problem, but in the end we decided on a classic leather couch :) I hope that helps!