My first question was what is a cornice ---now that I see what it is, it doesn't look hard to make at all. I've never made one, but it almost looks like you could take a piece of formed styrofoam, for example, a piece that a stereo or vcr was cradled in (L shape) and just trim off the pieces you don't want, cover it and install.... dang it toomuch, now I might have to try one of those....lol.

I like them but they are definitely more formal than current window treatments. I'm guessing the people that like their Waterford (see the Waterford bankruptcy thread) also like swags and jabots. I think it's good company to hang out with. Have you checked the Country Curtains catalog for ideas? New pole rods and some simple drapes with an updated pattern would easy to sew and will change the whole look of your room. Here is a link that might be useful: Country Curtains

In our new home, we will have windows with what I guess is a transom window above them -- you can see what they look like in this picture of a model: http://www.flickr.com/photos/mythlady/1041073163/. The transom part doesn't open. Since wallpapering as I would like to do it is impractical for various reasons, I have an idea of using cornices over the windows that I would then cover with reproduction arts & crafts paper or fabric, to bring that element into the room without breaking our budget (some of the reproduction papers are $200/bolt). But . . . where would I put the cornice? I'm thinking of something about 12" -- would I put it over the lower window, leaving the top one uncovered? Or over the top windows, which would then be partially covered? I will probably hang some kind of drapes under the cornice, although since the windows will have blinds, the drapes will be just for show. Any help with this idea will be gratefully appreciated. I don't want to spend a ton of money for fabric or wallpaper and then find out the whole thing looks goofy --

In a smaller bedroom -- you COULD choose to keep the walls painted in a simple color -- which would allow the viewer's eye to rest. And appreciate the toile! You could also choose to use a plain bedspread or cover -- and THEN add a toile-covered duvet -- which could be folded across the end of the bed. Then add toile-covered shams with a smaller plain long bolster pillow to the top of the bed. Add a small plain chair to a corner -- but then add a small pillow of the toile. For the windows -- you could add plain shades or even bamboo shades -- and THEN add panels of the toile fabric. Then add a toile covered cornice. Just some thoughts!