First off GORGEOUS ROOM. Love your floor, granite, recessed lights, and wall color choice. I would stick to a neutral sheer panel and a colored valance- if you are putting artwork above the fireplace, maybe a color to tie in with that.... Sheer drapes with a valance would work , allows the sunshine to come in but sheer also allows your neighbors to peek in! I would also use wrought decorative iron fixures to hang the curtains in a chestnut brown to match the floor. Beautiful!

This room has a similar window layout. I like the white blinds (can't tell if they are woven or wood but a 2 inch white wood blind would give a lot of natural light) mixed with drapes. West elm has a lot of nice linen neutral drapes and sheers that could work.
http://houzz.com/photos/79820

Do you need privacy either daytime or night time? Do you need sun control in the afternoon or evening.?

Gosh- in not much help, but you could do anything here. What do you like? Since its off the kitchen, I would do a fun fabric on the furniture ( so stains get lost), then tie in the curtain color on the fabric.

Because the space is very open and the walls are so light I'd have fun with some patterned curtains! Hang them close to the ceiling and it will help make the ceiling feel even higher. Depends on your style and what your plans are for the rest of the house but either way I think curtains are the best way to go!

Thanks for all the responses, guys! The back wall faces east so in the morning it's going to be gloriously sunny. (The entire back wall of the house is windows.) After talking about it last night, I think we're going to go with the two inch wood blinds on all the windows. With so many windows, privacy is definitely a concern but I think we'll let the blinds take care of that. Then the curtains can just be for pretty.

Without knowing what you like or anything about sun/privacy issues, it is difficult to comment, except very generally. So my choices would be 2" wood blinds or bamboo shades on all the windows. On the long wall I would also add stationary drapery panels at each end of the set of windows. I would not add drapery panels to the windows by the fireplace.

The wood blinds have the advantage that you can tilt them or close them to control the sun. The bamboo shades are perhaps more interesting looking but will be either up or down, not allowing for tilting.

The type drapery panels you get is dependent on what your furniture looks like. White linen look panels would work with almost anything.
Carolyn Albert-Kincl, ASID

2" wood blinds will looks stunning in a stain that matches your floors. We love these 2" Premium Wood Blinds from Levolor: http://blnds.cm/ZHqqVp

If you start to have problems with temperature change getting that much sun in the morning, you might consider a window covering that gives some insulation. Cellular shades trap air in fabric cells against your window and offer your home some serious energy efficiency. But if you're going for a more traditional look, shutters will give you great insulation too.

Keep an eye on our sale page, we post new sales every month: http://bit.ly/blindscomsales

I'd go with cellular shades because they are compact and do not cover much window if not in use. Ours are Made in the US here in our facility and have a 10 year warranty. Super easy to install, add insulation and are available in lots of colors. We offer free samples too! http://cellularwindowshades.com/samples.html

I would consider plantation shutters and forget the curtains........great space

Beautiful wood floor.

Shutters would look beautiful in this room. We choose silk-white shutters with our crème molding. There is another shutter on the other side of the fireplace. The white shutters really brighten the room.
The frame we used on this shutter is a 3" deco frame.

ohhhhhhhhhhh I didn't even think shutters..that's a brilliant idea - wood or white? I am thinking white as the floor is so gorgeosly dark... nice contrast. what are your thoughts?

White.

You say you want to make the fireplace the focal point in the room. It will have to be addressed. Right now it is not, as it is overpowered by the floor and windows.

Designing a more imposing fireplace. Add great fabric panels on black rods...

a metal partition might help. contact me at tara@sz-maxcom.cn

I can see faux roman shade valances out of linen across the tops of the windows. then 3" wood blinds inside the window in a color that blends with the walls. You then have light control as I am sure with all those windows you will have light streaming into that beautiful room at one time of the day. Clean, simple, Make sure to put an important piece above the fireplace to make it really stand out. Whether it is colorful or ornate.......it has to scream, "look at me!"

I loooove the look of those silk-white shutters. I don't think I realized such glossy paint existed! It really makes those shutters pop.

Also, I really like idea of roman shades. They're so pretty. This one in particular caught my eye. If I put the blinds in the window, that'd be the best of both worlds. Something like the below picture?

Ikea Vivian. Set of two cotton panels for $9.99. Go with white!!! Would look great and so sheer. Can't go wrong with white and it won't be so bold and still let light in. And won't cost much for all those windows.

Consider roman blinds in a contrasting color or simple white with brown or black boarder.

I would put roman shades of natural grasses. After that you can always see if you need sheers or thin panels as well. The natural grasses come in all shades, opacities, thicknesses and lots of colors. Here is one example. (hoe it works).
It didn't. Go to: conradshades.com to get ideas.

Now I went to my laptop and want to try if I can post the picture of the 'Conrad Shades now.

Hah! It worked!

Hopefully, here are two more:

The home is beautiful. Great wood floors. Since there is no furn not sure of your style? I like to keep windows simple. Is there a privacy issue? Need more infor. But with what you post I would go white panels on each window on ends. For a inexpensive and casual look, you could put bamboo shades in a dark brown. Keep them lowered about 1/2 way dn. that's it. Rods should be dark brn or black. A big and colorful picture over fireplace, is nice make sure only 5" above mantel. Keep mantel uncluttered. With 3 silver candlestrick. In different hgts. Looks like TV goes on wall, with a media cabinet under it. Some big palms in front of windows with firepl. Would fill space and frame the fireplace.

I would sofa in front of windows, with a end table with tall lamp. Add 2 chairs facing firepl. A large 40" square coffee table. Ad a 8x10 area rug in front of sofa. And you are done. Chairs can be a print. If walls are gray go with a print with hat color in them. Same with rug, keep rug simple.