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Well, a karaoke room is generally pretty dark besides a few flashy lights, you can use the LED light thing for that and maybe a neon lamp of some sort. For the walls, you can make your own custom metal-looking wallpaper, choose from a preset or make it the rugged-looking one (not as bad as the shanty wall, i forgot what it was called though).

And, there should be a huge TV and speakers everywhere and you can use the box corner sofa set to create a little thing in front of it, with a table in the middle with a book and if there is, a microphone somewhere. More than one, maybe three.
 
i made one giant karaoke room. i used boxed sofas around the wall, put some mics, wall mounted speakers and i used the wall mounted TV as like television screens in the background.
 
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