The height of a shower rod relative to the position of a tub is largely a matter of use and desired effect. Some shower curtains extend almost entirely to the floor while others drop just below the rim of an attractive claw foot tub. What is certain is the shower curtain liner needs to hang down into the tub below its rim so water does not splash onto the floor. Hanging a Shower Rod Shower curtains are commonly 6 feet in length from top to bottom. They are made longer as well. For custom bathtub designs, their length can vary greatly. If you are installing the shower rod anew and need to know where to hang it, the first thing to do is measure the length of the liner. If it is 6 feet long, figure that it should hang below the rim of the tub at least 5 inches. That means the rod should be placed 5 feet 7 inches from the top of the tub. However, consider the difference between the rod placement and where the liner attaches to the curtain rings. If the liner dangles 2 inches below the rod, you can add that to the height of the rod, placing it 5 feet 9 inches above the tub. The curtain also requires some consideration. It should not drag along the floor; rather, it should be at least 2 inches above it when hanging. If you want to showcase a claw foot tub, hang the curtain just a few inches below the rim of the tub. Here is a link that might be useful: shower rods

Your drapes are thin so but I don't see why you can't hook some of the lightweight drapery pins into the tabs and hang from those. With 9" spacing you'll just have larger folds when the drapes are open. BTW, be sure to use the lightweight vs the heavy pins for your fabric. Since the tabs on your drapery headers are 'open' vs sewn vertically to the rod pocket they may tend to pull up unevenly when hung. I suggest you either sew, hand tack, or use fabric glue to secure the tabs to the rod pocket. If this doesn't make sense, let me know. I purchased my traverse rods from overstock and they have the faux rings already on the rods. I recently converted some grommet drapes using the pins and hanging on a traverse rod.......turned out nice.

I would either hang some shades inside the windows or put the rod above the top window trim and wider than the side trims. Those windows & window trim look really nice so why not allow them to be seen. I'd personally go shades inside the window frames. You get privacy, block that view of siding and old fence, and still get to see those nice looking trimmed windows.

From what I can tell from your photo, it seems you don't have a choice, as there is no room between the top of the transom and the ceiling. They need to be hung between the window and the transom. That being said, there seems to be a weird wavy piece of ceiling in that room. Is there room above that? Can it be removed?