Just a quick follow-up post; I fixed the wall above the stairway. I ended up actually deleting the walls on both the first and second level and replacing them.
In so doing, I realized that I had a few other things that needed small adjustments, like the railing behind the chairs, the size of the rug under the chairs, and placement of the chairs...
I realize it's a bit hard to see from this picture (since I didn't make the roofing invisible to take it), but in order to adjust the railing, I made it about half its original size and copied it so that there are more balusters. The rug I made 6'6" x 12' instead of 5' x 13'; I think it now fits better in the overlook space. In doing that I moved the chairs, table and lamp so that they're more symmetrically placed on the rug.
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