First off, would love to see more shots from more angles! It looks like your large sectional is pushed up against the window wall. I would pull it out, turn it around, etc. And, for the windows, I would do something like this instead of drapes;

If you want to do drapery-- Mount the rod above the bookshelf, and just order end caps not finials.

If you want to do another fabric window treatment, try and inside mount operable roman shade. This will stay within the trim, add color and pattern, and wont cover any of your bookshelf!

Would love to see more pics of the room!

I would love to see a photo with the sofa pulled away and maybe turned 90 degrees. Right now it is hiding the bottom portion of the windows.

Here is a photo showing a way you could add some fabric: sheer and narrow.

What is the focal point in this space - TV, FP, view? At a minimum, pull the sectional 6-8" away from the wall so the windows and any treatment won't look crushed behind it. The bookcases indicate to me there may be a FP on that wall, in which case, I'd turn the sofa to face it.

First of all, please forgive the mess we are going through a major renovation right now. Unfortunately space is very limited because our sectional is so large. This was the only configuration we could set it up in where it would fit in the room and make sense. I really like the Roman shade idea to give the room some more color. I have also thought about hanging the curtains only on one side of the window and draping it back to the side, because I think I'm going to have the same problem on the other side with the grandfather clock. Do you think it would look weird if the drapes were pulled toward the center of the wall versus framing on the outside?

Can the sectional be separated into different pieces? That could give you many more options.

We did try breaking it up but the hubby hated it. LOL.

Those husbands....Can you flip it so that you can sit and look out the window? I was thinking the clock could look good put in the middle between the two windows.

But if furniture needs to stay in place, pull out 8 inches or so. Then I would look for a different spot for the clock (which I love). Foyer?

What is the view like? And how about need for privacy? You need to think of those. Nice wood blinds to match your built ins maybe? Or look into the blinds that are encased in a sheer fabric.

We have that weird little half wall, which is great for architectural detail, however it causes a bit of a problem where we can't flip the sectional to the other side because we completely block off the stairs down to the basement. If we pulled the sectional 8 inches from the wall that little half wall again becomes a problem because we have a hard time entering the living space from the kitchen area. For window coverings I originally hoping to do a light filtering cellular shade that has the top down bottom up feature and drapes. However I don't know if drapes are going to be able to work there so maybe doing a Roman shade is the right way to go.

Inside mount, and keep the fabric plain and simple.

Match the ceiling color with a sheer roman.