we put up curtains in the guest bedroom! we bought the fabric at joann this past weekend, and i did a quick 1-inch hem around two panels. yea, it looks a bit akward with the gap at the top, but i'll explain that in a sec.
here's a picture of what the window looked like, back from before we moved in:
there is a weird soffit right above the window, which makes it really awkward. we could have put the curtain rod up above the window and on the soffit, but then the curtains would have been a foot away from the windows themselves. plus that portion of the soffit/wall is angled outwards. so we opted to put the curtain rod below the soffit, and put the center support up into the soffit itself.
so, it is what it is for now until we remove the soffit, but we're going to wait until we do a full reno of the guest bedroom for that. in the meantime, we have ideas of creating some sort of valence we staple right up into the soffit to cover that gap..