They're too low. You'll still see DH's handiwork even with them hung higher, you just won't see the corners.

Sorry to butt in:

What kind of texture is that on the wall? Did you DIY? If so, what technique/materials?

(those curtains are gorgeous!)

Do you have to have drapes? That woodwork is too pretty to hide.

Would you consider inside mount shutters? Or inside mount balloon shades?

I would hang the rod right under the crown. You wouldn't be hiding the beautiful trim since they will be open most of the time. You're gut has already spoken...trust it!

How come I can't see the pics? Are they invisible? :oP

Visually, I think it would look best hung right between your crown and your window trim. I see now why you are questioning how many ring clips to use. They are a little floppy on top with the rings. Can't remember if you said whether you will actually be opening and closing them. If not, I think I might shir (is that the right word? :) them on the rod, unless adding more clips will support the top more.

Monica, what a beautiful combination of colors & materials. I like it very much.

Thanks for your input everyone. Gee, I hate to cover up all that hard work DH did on the windows :( I'm the one that insisted on curtains but thought it would look ok below the trim. Annz, it's the corners I think are so pretty.
monablair, I guess we didn't "have" to have drapes but I felt like the room (and my vision for it) needed them. DH would rather I hadn't (because of his handy trim work) but we've spent so much on drapery/hardware mistakes already and they complete the look I intended for the room.
ichic, I blocked your isp (g) Not really. I don't know why you can't see them. Below is the direct link. Click on "next" for the wide shot.

Gardenwebber, the wall texture is called "skip trowel". That was one of the few things we contracted out. Not sure if DH could have done that or not, he does most construction related things, but thought this would be best in the hands of a professional. Thank you for your compliment :)
roguevalley, sheese, I completely forgot to respond to the ring clip thread. Life is moving tooooo fast lately :o The drapes (or are they curtains?) aren't pleated so I guess that's why they're floppy looking. I have to stop sinking money and time into this and move on. It would take more clips and more (ordering time) so I'll just shirr them like the panel on the far right. They will be pulled back 90% of the time.
awm03, thank you!
Thanks again everyone,
Monica

Here is a link that might be useful: Window, close-up

I don't think that hanging the rod above the molding is going to cover up so much. Right now, it just looks odd. Molding is nice, but hardly the focal point of the whole room.

I'd rather see rod pockets than rings.

Are these just for show or do you plan on closing them regularly? Our curtains with rings are a pain (from RH). I might go with the rod type. Less to fuss with.
Beautiful color and I agree with AWM's opinon too! Lovely windows, walls and fabric choice. Height definitely between the crown moulding and the window moulding!

We have had the exact same discussion, complete with DH-installed (gorgeous!) trim over the windows very similar to yours. If you haven't completely committed to shirring (and want the option to open/close)...

I'd agree with the recommendation to put the rod between the top of the molding and the crown molding. But there's one other step that may have saved my marriage (hee hee!): curtain rods that are wider than the windows. As in, when your curtains are open, they stack entirely outside the frame. You won't be able to see the trim when the curtains are closed, but when they're open you can see everything.

Don't be so hard on yourself. I am having the same problems with hanging ready-made window treatments in my home, too. Where to hang? How high? How wide? What rod? Blah, blah, blah. I'm so impressed with the people who can select and hang ready-made WT's and have them look like a pro did it.

I'm looking for photos online and in my mags to see if I can find a photo of a window similar to yours. I do think you shouldn't worry so much about covering the woodwork. Perfectly hung curtains will make the woodwork look that much more beautiful, no matter how much is covered.