I like the idea of woven & panels if your budget allows. Panels need to hang higher than yours.

They make some upside down shades now that can operate to open from the top down which might be really good for your situation (they also operate bottom up). That's what I have by my bathtub - love them!.

How about the new style Vision Shades. They are made from fabric and allow you to control light and privacy. You can see them at http://www.solarscreenshade.com

I like the idea of doing a woven wood blind over panels. They will help bring some nice color and textures to the room.

I think the panels you have on the one window look great, why not do the other window in panels. This is such a beautiful room. If you plan to put artwork over the dresser, you might want to draw from the colors in the painting and go with colored panels.

Here is an inspiration photo of the woven wood shade layered with drapery panels and a link to where you might find similar woven wood shades and drapery you are looking for.

http://www.blindsgalore.com/WindowProduct.asp?id=542700

Also, what felixgrantham was referring to is what we call our top-down bottom-up option. It is a nice alternative to the regular functioning blinds you might be used to. It is available on a variety of blinds, you just choose that option before you check out. http://www.blindsgalore.com/WindowProduct.asp?id=252210

I purchased the one set of panels from pb and if you look at the bottom they are too short
they actually measure 3 inches shorter than they are supposed to be so then I was thinking taller and also you will see I have a horrible view into a carport on that side and would like to censor it but not block out the light