You are getting so much good advice here--wish I'd known of all these options when I was out searching. Just buy everything you think you'll need and a little bit more. There are different finishes and you want the rod and rings to all be the same style and finish. The purpose of the fling rod is just to open and close your drapes without touching the drapes with your hand--like they have in hotels. It does nothing to the rod itself which would not happen from the rings going back and forth over time on the rod. Rubbing off the finish could happen with any rod, though I would not worry about it. If it did, I'd just touch up with a rust-o-leum product. You may be over thinking it--saying from someone who over thinks everything. The rod I liked was not in stock and so I had to wait about a week for it to come in and then they only had limited qualtities of the rings. The quantity of rings you need is dependent on your drapes. As mine are pinch pleats I needed one per pleat plus 2 more for each end. Drapery hooks I bought at JC Pennies, though could probably get at Lowes as well. End treatment was the most difficult but chelone, a poster here who I believe makes drapery for a living, told me what to do at that time.

This pic is similar to what I have in mind, except that my window is straight at the top - it isn't arched, as in the pic. Here is a link that might be useful:

I'm not sure if I am completely understand your dilemma so forgive me if what I write doesn't make sense, What is the reason for the short, lighter curtain? Is it a sheer for privacy? If you need privacy and your sheers are returnable you might consider replacing them with blinds. Blinds are considered a more modern look than sheers and would work better with your rug and furniture. If your sill is interfering with your longer panels you should be able to find rods that extend out farther than the rods you have now. If you have the room, I would also suggest that you lengthen your rod so when your long curtains are pulled back you see the window trim. You may want to add some extra panels for fullness. The designer trick to to hang your curtains high and wide. This blog has some good suggestions about curtains: http://www.younghouselove.com/2009/06/email-answer-its-curtains-for-you/

Thanks everyone! Doing the bottom hem isn't too hard, just more time consuming than not doing one :) But if people think that would be best, I'd attempt it. Regarding comments on choosing coordinating fabric, I think I would choose a teal silk of the same type - I went to a couple fabric stores over the weekend and don't think it will be too difficult. I have teal accent chairs in the room and I think this would make the look more cohesive. Either teal or a gray, but I'm kind of tired of gray and want a cozier look in the room. If I add to the bottom, the next question is: at what point do I start the new color? I might be able to line it up with the bottom of the window sill since I will gain about 3 inches in length once I undo the bottom hem. But if I don't have enough, I think it would look bad to have the transition be a few inches above or below the sill (e.g., look like I measured wrong). In that case, how far up the window should the transition be?