I would hang them all at the same height with the rod just skimming the top of the window, creating a waterline around the room...ignore the ceiling height.

Teacats and awm, thank you... I loved those sheers, too. They came from a lucky find at someplace like Calico Corners...the yardage came in the perfect shade of ivory for my walls, and was railroaded on the bolt with a ten-inch hemstitched hem already in. They were a soft, un-shiny polyester, and they came down, went in the washing machine and the dryer, went right back up on the rods barely damp, and looked perfect for fifteen years. I tried to find the same stuff several years later with no success, but I imagine it's out there somewhere. I think I have to stop posting those photos. We sold the house two years ago, and I am still a little homesick for it, despite my enthusiasm for the life change that came with it. The people who bought the house also bought all the wall lamps, all the curtains, half of the rugs, and most of the furniture that wasn't coming with us, so a lot of what is in the photos isn't ours any more. All in all, a very good thing...but still... :>\

I had an inspection done, the plumbing and electrical are all up to date, thank God. There is no HVAC but I am going to see how this summer goes before I decide to install it through the house. I live in Virginia and the summers are hot but being up in the Blue Ridge keeps some of the humidity at bay. The windows are original and there are exterior aluminum storm windows covering them. I am hoping and praying that they are sufficient to keep the house from being windy inside. I think the cafe curtains and tension rods will work perfectly while I get settled. I was not planning on working on the exterior of the home right away but it looks like the porch roof will need to be replaced and all of the windows and trim around the exterior need to be painted. The 115 year old wood is exposed. The previous owners did NOTHING in the way of maintenance. The walls have been scribbled and written on by their children, they didn't bother to paint over it. So it has been at least 13 years since any exterior wood has been painted.

While it really is a preference thing, I personally don't care for seeing a lot of empty wall space between the rod and top of window. However, in your case, I would mount them in the same place as your living room windows, since you can see all the windows from either room. I personally don't like the look of the step down room's treatment being farther down. Doesn't look quite right.