Do a nice rod with colorful ikea type curtains, hang the rod high.

well, which way do you want to go?

if you want more sleek and modern, go with IKEA panels, as idmac states. hang them at the height where the ceiling meets the wall on the TV wall.

if you want something more traditional, still hang the rod there, but get drapes instead.
pinch pleats are formal, open rings or tab tops are very informal.

with either of those options, you can have a double layer, and have something sheer up against the doors, with light blocking on top.

Yes, out with the vertical blinds and in with some nice drapes. Do you need blackout drapes in this room? How light does it get in there? I guess what you do also depends upon your view and if you like it or not?

Thanks for all the input! I will probably go with drapes. We get sun all throughout the day, as it is south and west facing windows.

Ado has a sheer designed to go over your vertical blinds, called AdoWrap. It gives a soft look to the window, appears to be sheers, but the vertical blinds give you privacy. So if the verticals are working well to control the light, but you want a new look, that might be very cost effective for you. Ado Wrap is removable, and machine washable.
Attached is a photo of a client with Luminettes, which seemed too contemporary for her. So they have a very traditional valance which you will need to ignore. I'm looking for a good photo of an Ado Wrap, but the look is similar.
If the verticals are not functioning, or not controlling the light the way you would like, please give me a little more information so I may suggest a better option. There are tremendous choices out there now.

http://ado.mojoe.net/ADOwrap.aspx or google AdoWrap, and more images will come up.

I would personally go for drapes you can always add accessories to the drapes to spruce them up .

Vertical blinds are one of the worst decorative ideas anyone ever came up with! (Dare I say -- Tacky!) You'll be amazed how much better your room will look without them! And it appears a great room!

If you want to mute the sunlight, sheers (in white or cream only -- any other color usually looks way too cutsy), with lined (or the drapes will fade) draperies that easily shut -- for this room, grommets would work well.

I have seen some sheers that have white-on-white patterns that might work, but you have to be careful with that; it can get too schlocky if not well done.

Panel curtains will look good and neutral.
I think draperies will be too heavy with your furniture.
http://www.houzz.com/photos/products/%22panel-curtains%22

Masterworks, thanks for the tip re: ADO Wrap. Surprisingly great look!

AdoWrap snaps on over the vertical blinds, and removes to wash it. Never use heat in the dryer with it, though. They use heat to set it wrinkle free, so only air dry and hang up damp. It can totally change the look of vertical blinds. I prefer it to Luminette.

Well, do you really like the dark room? I would open it all up with light sheers at the most! If dark is your thing then make the bedroom or study the cave and lighten up the living space

I have verticals but as much as I would like to change them they give the best alternative to control the amount of light that comes into the living room. I have three large picture windows and two smaller ones and our furniture and carpeting is prone to fading. I will look into the AdoWraps to soften the look. Wish I could make them myself.

Ado fabric is machine washable, as another plus. Never put them in a hot dryer (spin dry or air dry, put them up damp), as the fabrics are heat set to be wrinkle free. If you put them in a warm dryer, you will set in wrinkles instead.

The Ado wrap is a wonderful update to existing vertical blinds. It is cost effective, the fabrics are washable as stated above and you keep the functionality of your blinds with the look of drapes. Have used them many times, they are worth your consideration!

Is something similar to the Ado wrap available in NZ if anyone knows?

I'm about to have a slider installed and trying to decide what to use. The vertical blind seems like it will be most versatile but least visually appealing