Well, if you want to keep curtains, I would raise the rods more towards the ceiling and have the bottom of the curtains reach the floor. I also would expand the rods so when open you see all of the windows. I also don't think the color works. Or, get rid of the curtains and just use the blinds, but I would lighten them also. Or, I think plantation shutters would be really nice in that area. It's a very pretty space and I really like the molding around the windows. I'd want to show that off.

You do have lovely windows and molding. You could easily just take the curtains down or you could add some shutters.

What is funny is this looks nearly identical to my windows.

{{!gwi}}

My guess is you are not wanting the panels for privacy since the ones you have are sheer and the roman blinds are not doing that job either. Well I guess you could want new panels because these don't offer privacy. So with that said, if you want privacy I'd buy a liner for the shades and forget the panels unless you'd be happy with shorter ones seeing that you have baseboard heat. No reason to take a chance of heavier panels blocking the heat and/or getting to hot and catching fire.
I'd love to see more pictures of this room. I like what I see.

Ok,so I'm thinking that I should try putting up the bay window system and see if it will fit the space and hang it higher than the casings.

aktillery - I love your beautiful space, and that's what I'm trying to accomplish.
sjt9200 - I agree that the current panel color doesn't look good in pics...it does look better in real life but that's not a concern because we are painting the room more of a tan color, BM Powell Buff, and the panels I was looking at are the Pottery Barn Silk Duponi panels possibly in ivory. Plantation shutters are beautiful but out at this time since I just purchased the bamboos.

I'd like to have the panels hang in the area between the three windows and then I could always pull them over the windows for extra privacy when needed although I have to say we rarely use the room...it's more of a sitting room. So should I purchase 6 panels or 4 panels? or 2 normal width panels and two extra wide for the two sides of the middle window? And it sounds like down to the floor is the way to go.

Thanks again for all of your great advice!

I agree with using a bay window connector set up, and hanging the rods higher than the casings. (Unfortunately your current rods were hung so that the screws were drilled into the wood, so you'll have to get some wood filler and touch up paint.)

Since you are raising the curtain rods you will want panels that are longer than the ones you have now. I think you'd want to place the rods so that the panels are just touching the floor. If the ones you find are too short, you can get the longer size and shorten them; or if they are just a bit too short you can hang them from rings instead of using the rod pocket. That will buy you a couple of extra inches.

Because the panels won't go around the corners past the rod connectors, you'll want 6 panels rather than 4 so that you can frame each window.

An alternative would be to get a valance or swag to tie the 3 windows together and skip the panels. That would help show off the cool shape of that bay and not interfere with the baseboard heat.

"That would help show off the cool shape of that bay and not interfere with the baseboard heat."
Thank you chicagoans. I never understand why people ignore fire hazards in their homes.

Thanks Chicagoans and justgotabme, I do think about the fire hazard, so maybe it's possible to have the panels reach just to the top of the baseboard heat? Do you think that would look o.k.? I also do have some valances that I could try over the bamboo shades. I'll take pics tomorrow after I hang them to see what you all think. Although I do kind of have my heart set on the panels and bamboo shade look :, ugh, I'm just not good at this decorating stuff! I know what I like when I see it, but it just seems that I have a hard time duplicating it!!!!

ksoxgrl, how about this idea: have your long heavier panels, but only during the months when you are not using the baseboard heat. No fire hazard that way. When cold weather comes along, and the baseboard heat is needed once again, you'll want the added warmth of the sun so replacing the panels with your valances will work out perfectly. If you still need the privacy I'd purchase liners for the roman shades.

Justgotabme, thanks for all of your creative ideas! That's a possibility. It's just if I go through the trouble of putting up the bay window system for the panels, I don't think valances would look good that high up.....ugh again! I could just buy some nicer individual window rods and use them for both the panels and valances. What do you think?

I think individual rods would work the best if you do change WTs at the season break unless the system you are talking about doesn't stand out much. Then maybe you could just gather the valances over the windows leaving the rest of the "rods" exposed. Not sure how that would look without seeing the system you are thinking of using. Do you have a link you could share?

Sorry, I don't see the benefit of the panels in that space. You want your moulding to show, you have lovely shades that work with the furniture color, and you don't have enough space on either side of each window for the panels to hang without covering up the very moulding you want to show. Plus you have baseboard heat, and that can be an issue at any time, depending on where you live. Here in Chicago, you could have the heat on in June. So taking the panels on and off depending on heat use could be a problem.

Instead of the panels, I would consider an accent color for the room that you could use in the bay and the bay ceiling. Then repeat that color in the room in pillows, art, etc. Get a nice rug just for that space, that pull all the colors together.

Don't know if you have considered it, but down the road that would be a lovely space for a comfy chair or chaise and lamp and side table. It would bring the eye up into the space more, as the chest really keeps your eye below the sill, and does't allow you to fully enjoy the visual impact of the space.

Joni Webb (Cote de Texas Blog) has one of the best lessons ever on window treatments. I put the link to it below. Be warned though - it is very picture heavy and even with my high speed dsl, it takes awhile to load. It is worth reading though - it really trained my eye in what to look for in window treatments.
Your window is perfect for a window seat, unless there is not a way to build one that doesn't affect the baseboard heat? Either way, I think the curtains hung on either side would turn the area into a cozy nook, maybe with a Victorian love seat? Although this would cover the pretty post on the left, it would highlight your beautiful woodwork and calm the area.

Here is a link that might be useful: Cote De Texas Window Treatment Lesson

Sorry for not replying sooner, but I've been away for several days doing the whole Easter thing :) First thanks to everyone for your opinions and/or advice. I'm really loving the panels look especially after looking at the Cote de Texas blog, thanks Cella! And Les thanks for the suggestions on furniture location. See the pics I've included of the rest of the room. Maybe I'll try reshuffling the furniture to see what might look better in front of the bay window. So what type of fabric do you think I should do after seeing the rest of the room? Linen, silk, faux silk? Also see the third pic of an adjoining dining room. Do you think I could hang the same panels on either side of this set of windows? Again, thanks for all of your advice!