I know what you mean about dead space, but I think the height that hanging curtains high brings to the room outweighs the con.

My biggest concern is the contrast of the white shades and dark casing.

Curtains/rod sound lovely!!!

It's too bad the cellular isn't a dark color but since you have to work with what you have what about something like this:

[Contemporary Bedroom design[(https://www.houzz.com/photos/contemporary-bedroom-ideas-phbr1-bp~t_715~s_2103) by Dc Metro Interior Designer Paula Grace Designs, Inc.

I'm not sure how deep the headrail is but have you considered a valance to cover the cellular?

They should be hung at least 6" above the top of the window. Putting the rod right above the headrail isn't going to hide it.
The only way to hide that headrail is with a valance or a cornice. Either a valance over the panels or just a valance (instead of panels) would work, too.

anele and annz - yes, there is quite a bit of contrast. When I was looking at shade colors I really wanted to try and brighten things up since there is a lot of dark woodwork throughout the house. Anything off white or light tan ended up looking "drab" or dirty and I was pretty much completely opposed to something as dark as the woodwork. However, now that the room is painted and the new wood floors are in....I realize I probably could have gone a bit darker with the shades. Hindsight.

snookums and shady - A valance AND curtains is a little too much for my taste. Maybe a little too formal or something (this room belongs to a 3 year old). I would consider just a valance, though. I guess the only sore point would be that I spent almost $100 on 7 yards of fabric, and it would be a shame not to use it all. (5 yards was for the curtains and then another couple yards for a matching bedskirt).

Perhaps I will hang the curtains and if I don't like the final look, I can probably still make a valance using one of the curtain panels.

Yes, valances aren't for everyone. They don't have to look formal though.

You can always make some pillows or recover a chair/ottoman with extra fabric.

It could be that the silver rod will coordinate well with the shades and will look intentional!

You can see that I have the same issue. PO put in the white. They disguised them with sheers that were always down in front of the window, but I took them down.
{{!gwi}}

This post was edited by anele on Mon, Feb 11, 13 at 14:09

Valances can be fun and informal too. Check out Patemeadows.

Here is a link that might be useful: Valances

Annz has the placement perfect. Hang the rod high on the wall-it makes your room appear taller.

I think mounted up high is the way to go. If you notice in annz picture, attention is drawn to the drapes. I don't think you need to hide the shades headrail to create a nice look.

Maybe it is my age, but I can not make myself like drapes hung so high....I do not think it makes the ceilings look any higher unless they are pulled closed.

I usually try to match the shades to the trim around the window. I prefer painted white trim, so I get white shades that blend right into the window trim.

I much prefer the drapes hung higher over the window, but not so high as in the photo posted by Annz, just a bit lower than that.

I also like to hang my curtains high, but definitely leave room up top in case you decide to do any crown molding in the rooms at a future date.

phoggie: I'm with you and I don't think it's my age -- I try to stay up to date without being too trendy. I do not think that draperies need to be hung high. I personally do not want my windows or ceiling to look higher, and sometimes it's nice to bring attention to woodwork surrounding the window. I have extended draperies across similar windows and the wall to cover wall space, which makes the room look fuller and more complete.