Hmm,
sorry wanted to post one more photo...how do you do that?

I always hang mine higher but don't have your nice mouldings. I'd hang in the same place as you have them now and do two panels with the bamboo being close to the wall color (or panel color).

bump

I think you should go to houzz.com and look for some inspiration.

The windows are close enough that you could do an asymmetric treatment on each with the long panels on the far sides.

But I'm not sure the look you are going for in the space, so it's hard to make recommendations. You could easily mount an inside bracket for a valance or a blind and just treat the interiors of the window and leave the wood work showing. Or you could just leave them bare as they are lovely windows and work well with the fireplace.

I struggled with this same issue, and posted on it. Ultimately - I decided to hang them like yours for a few reasons. 1) our moldings are so nice!
2) my ceilings are only 8'
3)96" drapes are too long, I'd have to have custom or hem them all!

I'm happy with the look, and think yours look good hung as is!

Despite the molding,I would place the rod up close to the ceiling.This will make the room appear taller.If you do the asymetric look on the drapes, your upper window trim will still be highlighted.

I would definitely hang them higher. I have never seen drapes hung below the moulding like that. Your home is lovely the fireplace is beautiful and looks great with the paint.

I like the height you have now, like Tinker's. I'm not a fan of curtains hung to the ceiling except when a room is on the formal side.

Two panels per window looks best, IMO. Whenever I see one panel on a window I'm always wondering, "Where's the rest of the curtains?" lol

My plan is to use a heavier rod, add bamboo roman blinds inside the frame and burlap curtain panels to the sides.

If you are going to do both blinds and burlap panels, plus a heavier rod, you are going to have to move the rod up and out. There is not enough space on the window frame for all that fabric. And if you move the rod up, you are at the ceiling.

Drapery panels normally cover wall space and the side frame with the glass window exposed as much as possible.

I generally don't like the look of one panel on each side of a set of windows. If the panel isn't closed, you have too much rod exposed. If you have the panel closed and covering the rod, then you have to swag it back to expose the window. And that swag-back is a more formal, fussy look than I like in my house.

It looks like you have room for stationary panels on the fireplace side of your windows. As long as they don't touch the mantle, they can be close to the fireplace and look fine.

Thank you everyone!
I thought about leaving them bare, but the windows aren't very nice and have screens on the inside.
I'm leaning toward hanging them toward the ceiling (although I think Tinkers room looks great, but I wonder if that's because her curtains are more sheer?)after trying them with the panels on either side of the window. I don't like how the rod cuts across the window frame.
So, obviously I would need a longer rod, that is just one panel on each side. Would it look funny butted right up against the fireplace?