Congratulations on your new home! Full length curtains would look great at your windows. Whether you hem them to just break, or have them billow on the floor is a personal preference. if you have kids and pets I would hem them so they just break when they hit the floor. If you think of a pair of pants that are perfectly hemmed, they have a slight break in the line of the pant; that's the same idea for hemming curtains that just break.

I am not a decorator but here is my 2 cents. Pin them up, one floor length and one window sill length. Look at them for a couple days then decide. I like curtains to the floor but that's just my personal preference not what a designer might say.

I like them full length! I hem mine that they "kiss" (barely touch) the floor so they still hang straight.

Trouser break for me.

You know, if you raised the rod you wouldn't have to hem the drapes at all.

I think it depends on what kind of privacy the room requires, if the curtains will be mostly opened or closed and if those are the actual curtains you intend to use. I think a bench under one of those windows would be perfect. I'd have short curtains or none at all. The wall wood is beautiful and I'd show it off wherever possible. terriks solution is an excellent one if you decide to keep those curtains and at full length.

This link has been posted many times and I think has been well received on the web; it may provide some inspiration and insight. I personally love Cote de Texas' views on curtains and drapery super helpful for plannig the curtains in my house.

Here is a link that might be useful: Cote de Texas- curtains

Thanks for everyones help. I have decided to hem the curtains to floor length.
The idea of raising the rod, so I dont have to sew, is a good idea but wont work because the rod is to the ceiling already. Probably hard to tell with all the wood.
Will post when the room is done.
Thanks again