I vote for #1, keep the windows open like in the picture.

I like the transom open...

I like the drapery and I vote for shutters on all the window because you might want to close it if the sun bothers you in the morning.

Another vote for keeping the transom open -

Looks unfinished to me, I would put shutters on transom. You can keep them open all the time and only close the bottom portion, that is what we do.

I've never seen window treatments on a transom. Why would you put something there that you'd have to climb a ladder to operate?

what about something like this....

Look at the bottom picture

Here is a link that might be useful: idea

I hope you don't mind me suggesting, but if I had windows like the ones you picture, I would use the type of honeycomb blinds that can be adjusted from both the top and the bottom. I would forego the shutters.

i vote transoms left open

My vote would be to leave the transoms open, with shutters as shown on the lower windows, and long drapes as shown in the sample photo, hung up high above the transom.

Thanks, everyone! I appreciate everyone's opinion and suggestions. I will probably go with the transoms open, like in the picture.

We have those transom windows because the walls are 12' tall and regular 8' windows would look too short, so the builder put the transoms on top. It looks nice, but I have never decorated around transoms before this house, so wasn't really sure what was the best look.

Anyway, that was my dilemma and each of you have helped me. Thanks again. Love this forum! :)

Open... :)

open transom definitely!

Well I'm not a designer - so take this just as a thought
The reason it looks unfinished to me is because of the door. The door goes to the top, but the windows don't? Just a humble thought, but maybe you could put a shirred treatment attached to the door that matches the curtains? And then leave the transoms?

I would do as roseabbey suggested. That way you have the option of closing them on days you want the room dark. I don't like light in the room when I have a migrane, I'm sick, I want to sleep in, or when my GD wants to take a nap!
Always think ahead of how you may want to use the room.

If you're going to be able to close your drapes, then forget what I just wrote!

I agree with roseabby--unless you are putting in operable drapes. A bedroom should have privacy as well as light control. It'd give me the creeps worried about a peeping Tom.

I like the picture very much.

I adore the look of the picture, it looks so soft. You certainly couldn't go wrong with that look.

Because you have 12 inches of wall between your window and transom, all the more reason to leave the transom bare, IMHO. However, I'm not one who likes a dark bedroom in the morning.
Definitely go with the drapery panels; it finishes and softens the whole look. That picture is absolutely lovely!

I would second the opinions of covering them somehow, so that in the summer, the sunlight streaming through the transoms won't cause you to wake up earlier than you'd like.

Ok, I would do the shutters kinda like they do on french doors where they put a 4" or so divider. This way you can open just the transom or the actual bottom window area.
Best of both worlds. I do think shutters not going all the way up would look odd.