As I alluded to earlier, I now have a pretty firm plan of how I want to treat the windows in the great room.
Here's what I started with:

these curtains came with our home, I'm so over them
The walls are now a yummy butter yellow, and I've kept the crisp white trim.
I have decided not to use shears, I can add them later if I feel we need more privacy, but I honestly don't think I will. I was also super happy to see those flimsy rods go away (note to self - list them on Craigslist!).
For now I have hung up one set of "drapes" - I used drop cloths like I keep seeing everywhere in blogland, what can I say? I loved the idea!

drapes in progress
(it's really hard to take a picture of a window!)
I really like the new rods I picked - I found them at Lowe's, so the price was right and they have the feeling I was looking for. At first I was going to just go for the dark, round finials, but I ended up with fluted amber glass balls. They go really nicely with the wood tones in the ceiling and mantle.
I had to hang up a set of the drop cloth panels because we needed drapes at least on the front of the house for privacy (the neighbors don't need to see me before I've had my coffee!), and because my husband was less than excited by the idea of drop cloths as drapes.
I'm pretty sure he was picturing clear plastic sheets on the windows.
I'm not sure if he really likes these, or was just really happy with the price (I've been brainwashing him into believing that Potter barn is the only place to buy drapes - hee hee!)
I'm very happy with the texture of the drop cloths. I'm going to sew on (green) ribbons to tie the drapes to the rings, because I love these drapes from Potter Barn:

Pottery Barn
And I'm also going to do something to the bottom of the drapes.
At first I was thinking of sewing a chunk of green and white fabric (maybe a trellis pattern?) to the bottom of each panel, but now I'm thinking of stenciling the panels instead - I figure if I don't like the stencil I can always go back and sew on some fabric later.
So that's the direction I'm headed with the drapes.
I'm excited for the change!