Here another picture of the window

Always hang curtains at ceiling height.

Lots of coffee table options. Post some pictures of a few you like and you'll get lots of votes. Try Crate and Barrel, Pottery Barn, etc. Don't go too wide since you want to have room to comfortably walk through the room.
For the best look, hang the curtains right below the crown molding and have them go to the floor. Another look I like is hanging them about one third of the way down within the distance between the ceiling and top of the window as this Houzz example shows.

Oops, sorry, here is the curtain height picture example. Be sure to put your cursor over the picture so you can see the rod height.
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Ann, do you think I should go for a rectangular shape vs round or aval because of the dining table? Also would glass be better?

I agree, hang the curtains just below the crown moulding. I'd also paint the wall to accent the fireplace and make it a focal point. Perhaps add a storage ottoman in a fun color to use as a coffee. table

I would not recommend to hang your coffee table. Ha. Pictures should be hung in relation to the furniture they're above. If you have a picture that's not over furniture then hang it so the middle of the pic is 60" from the floor. Over furniture like a couch then there should be 5" of wall showing between top of sofa and bottom of art.

Hang curtains usually high gives a better, richer look.

You have a great, big mantel. You can actually just set a picture on the mantel. It should be generally no bigger than the fireplace opening.

I think I might go for a rectangular coffee table, but the size is quite important. When you find one you love, take string and make the exact size on your floor to make sure the size works well in the space. I definitely think you could bring metal and glass into the space with a coffee table. That would be nice.

If the size is right, something like the Pottery Barn Tanner coffee table might be very nice in your room.

Here are a few coffee tables that might work for your room

Hang curtains high on a rod almost to the ceiling. I personally don't care for the look of grommets, too hard and industrial in most rooms. You could go with solid or patterned fabric. Pottery Barn or Ballard Designs have some good choices.

Add panels to ends of windows only light wt woven fabric. Add color. Find accent color teal would work. Use in panels and in pillows for chairs and sofa mix up a print with teal, brown black. Hang panels about 12" above window extend pass window 6" each side. Use dark wood rod. Let hang straight.

Add big art with color over Buffett and sofa. You need color in this nice room. Don't be afraid to go big. On walls.

Over firepl a nice art piece tall.

Add two silver round 20" high stools. Pier one carries also TJMax sometimes called garden stools. Google them. Place about 10" apart. Yr rm is small can't add too much.

Oh that's an interesting idea. I had thought about garden stools (maybe even in a color rather than silver) but I was thinking of using them with the chairs. You could use two of them as a coffee table.

Thanks everyone! I had already bought curtains in a 84 length, and kinda knew they were going to be to short. Just afraid that if I bought the 96 length it would be to much wall between the top of the curtain and top of the window. I love the idea of two garden stools, and leelee I love the last coffee table as well. Was that at Pottery Barn? I've been looking at pictures but nothing has jumped out at me. I always have a hard time with accessories and pictures in every room!

gmast, yes, the two on the left are PB

Here is a update on curtains and coffee table. Still needing pictures, and I can't help but thinking I should paint the dining table some kind of color? Has anybody ever done that? It just seems blah to me.

I love what you've done. Your table looks uo-to-date to me, in good shape and a great color. I would hate to see you paint it. It does need some accessories. something that could blend with both rooms. You've done a great job. may I ask do you have 8' ceilings, and if so, what length curtains did you get? did you have to have them hemmed?

Sorry, I saw your post above about the length but I'm still confused as to what length you got.

I bought the 96 length. I am the worst when it comes to the final details. Pictures and accessories overwhelm me.

read this http://houzz.com/ideabooks/3923663

Sorry, I didn't hem them.

Great job - I love the coffee table and curtains!!!

Oh, and the sofa pillows. It really looks great!

I would not paint the dining table. Now that you've introduced metal and glass in the coffee table, it looks perfect.

You could now add an accent color in your wall art and maybe repeat the accent color with a few fireplace mantle accessories. Orange is a complimentary color to blue, but many other colors would work too.
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Yes!

You'll want to make sure you repeat it a couple times in art or accessories, but if you do, it will look great.

"Something bright" or as they say the jewelry. Your room is coming along really nice. I have enjoyed seeing the transition.

yes , you can use this fabric on your dinning chairs. it will look nice , i m saying this as i have used the same color fabric on my dinning chairs too . yeah the design on the dinning cover was different but it really looking cool on my dinning chairs . so i shall advise you too to use this fabric on your dinning chairs